#RetirementOptions: Hey there financial experts and fellow independent contractors! 🌟 I’m currently 40 years old, making around 45k a year with no debt and small bills to pay. I have about 200k saved up, with 50k in mutual funds and ETFs mixed with a ROTH IRA, 100k in a CD, and 50k just sitting there with no investment strategy.
In my fidelity ROTH IRA, I can only put 7k every year. So here’s the burning question – what is the difference between a solo 401k retirement and a Roth IRA retirement, and which one would be better for someone in my shoes? 🧐
Also, I have this dilemma – should I put 50k or 100k towards a property or invest it in stocks? Living in expensive California, I’m not sure if it would make a significant impact on a down payment for a house. 🏠
If you have any advice for a financial noob like me to help my investments grow, I’m all ears! 🌱💸 Let’s dive into this discussion and help each other out! 💡 #InvestmentAdvice #RetirementPlanning #FinancialDecisions
401k and IRA = two completely separate retirement account types
Roth and Traditional = two complete separate tax treatments than can be applied to either of the account types
Solo 401k = a 401k where you are both the employer and the employee
If you can/want to save >$7k each year for retirement, you should consider a solo 401k. If you’re looking to move *only* the $50k and won’t be able further contribute it might not be worth the admin overhead to set up a 401k.