Do you have a Roth IRA Account? (1 Viewer)

[Dentist]

Curious what percent of the FFA uses the Roth IRA to their benefit. I know personally so few people that contribute to it, and even fewer who self-manage it.

In fact, it seems like the very people it was set up for (the middle to upper middle class) are the people using it the least whereas I know a lot more people who are over the income limits who use the IRA Recharacterization method to get it (Backdoor Roth IRA).

Would love to hear who uses has an account, and how you use/invest in it

 

[belljr]

opened one up 8 years ago, dont put a ton in it. wife has one also. we opened it with our 529. I have a guy but I can manage it

 

[KCitons]

I'm getting ready to set something up. As most are aware, I'm as dumb as a doorknob. So, I'm probably going to need someone else to manage it. I can clean my own dryer vent, but managing my own retirement seems foolish.

We have about $100k that I need to invest in the next few months. $22k will go to setting up each of our Roths.

 

[pats3in4]

I have a 401(k) at work and like to stash away a little extra towards retirement in an IRA, but I'm above the modified AGI limit for the traditional IRA. The Roth IRA has a higher modified AGI limit which allows me to contribute.

The side effect is that I get some tax diversification in my retirement accounts.

As for investments in the Roth, I use one of Vanguard's target date retirement accounts.

 

[snogger]

have a Roth that I've been contributing into monthly for the past 15+ years.

I meet with a Financial adviser at my bank each year to look over how it performed and move the percentages around.

I also contribute to a 401(k) and use there "age" criteria to determine where my funds go to.

 

[DocHolliday]

I have a Roth that I have been contributing to for years. Unfortunately, I have not contributed anything in the last couple of years. We have been making major upgrades to the house we bought a few years ago. I answered that I will not be contributing to it this year but I will know more after I receive my bonus in March. Fortunately, I contributed the max for a few years in my 401K and Roth so I feel like I am on a decent path.

I manage the account using cheap funds, simple diversification, and by rebalancing annually. Not tough to handle that yourself after reading a couple of books.

I have never stopped contributing to the company 401K. That is a must.

 

[Bull Dozier]

Yes, have a self managed Roth. The balance is a fraction of what it should be for my age, but I put in what I can.

Most of it is in ETFs, 5% of it I use to buy stocks I like when I think the moment is right, usually dividend paying stocks I plan on holding for a long time.

 

[culdeus]

Where is the option that you make too much money?

 

[Skylord]

Back door Roth IRA. Only started this method about three years ago but will be putting in for 2014 very soon. I had contributed to a Roth in my early days for a couple years as well.

I manage it myself, mainly just high dividend stocks. Maybe by the time I'm 60 it will be worth something but I'm not holding my breath. Not planning on using it for anything in particular.

 

[Pipes]

Rolled over an old 401K a number of years ago when you could spread it out over 4 years so I have about 50K in one...couple of mutual funds my advisor (old boss) recommended. I max out my 401K and am also contributing to 2 529 plans (kids 14 & 12). I max out the 401K because I'd rather get the tax break now rather than to not pay taxes when I retire and my income is much much lower.

 

[17seconds]

I've always been in or just below the phase out levels so I have never bothered to do it. I probably should have but I always figure if I get a raise I won't be able to do it anymore and I'd be dealing with another retirement account with peanuts in it.

Also, maxing out 401K and living in CA on a single income supporting a family of 4 - my budget is fairly tight already. Don't really have the scratch to do an IRA on top unless I made some sacrifices.

 

[Doctor Detroit]

Got mine in 1997 when I rolled over a traditional IRA. I drained a lot of the principal when I bought my primary residence, but I still have a nice chunk of profits in there and still contribute (not the max though). Looking to hit it a little harder over the next few years.

I have always managed it, and it has done quite well over the almost 17 years I've had it. I went to the lifecycle fund last year though, with Vanguard you pay the algorithms to figure out what is best for you.

 

[Dentist]

Where is the option that you make too much money?

because with the backdoor roth ira there is no such thing as "make too much money"

i make too much money, i still got my 11K in there

 

[culdeus]

Where is the option that you make too much money?

because with the backdoor roth ira there is no such thing as "make too much money"

i make too much money, i still got my 11K in there

only thing I backdoor is my wife.

11k? You and your mrs?

 

[Random]

I have struggled with this question for the past 5 years or so. Should I contribute?

Set one up for each of the wife and myself in 2005. Maxed both accounts for 4 years. Did very well in one (self managed - gold fund which blew up in those years) and not so well in the other (standard stock fund). Withdrew all contributions out of the profitable one in 2009/2010 and left the profit in. Both now are just sitting in a mixed stock fund and we haven't contributed for the past 4 or 5 years. I just don't see these account helping us "retire early".

So what did I do with the withdraws/money we were no longer contributing? Bought/paid off rental properties. I realize I could have gotten more loans and contributed to the Roth, but again, I just don't see how that helps me retire before 60. And please don't tell me about the equal payments rule for Roths. Those accounts won't be large enough for that rule to even matter until we're in our 60's anyway.

I believe we are still eligible to contribute, but currently do not as we are opting to pay off the rentals with that money. Thoughts?

 

[Dentist]

Where is the option that you make too much money?

because with the backdoor roth ira there is no such thing as "make too much money"

i make too much money, i still got my 11K in there

only thing I backdoor is my wife.

11k? You and your mrs?

correct.

 

[Dentist]

I have struggled with this question for the past 5 years or so. Should I contribute?

Set one up for each of the wife and myself in 2005. Maxed both accounts for 4 years. Did very well in one (self managed - gold fund which blew up in those years) and not so well in the other (standard stock fund). Withdrew all contributions out of the profitable one in 2009/2010 and left the profit in. Both now are just sitting in a mixed stock fund and we haven't contributed for the past 4 or 5 years. I just don't see these account helping us "retire early".

So what did I do with the withdraws/money we were no longer contributing? Bought/paid off rental properties. I realize I could have gotten more loans and contributed to the Roth, but again, I just don't see how that helps me retire before 60. And please don't tell me about the equal payments rule for Roths. Those accounts won't be large enough for that rule to even matter until we're in our 60's anyway.

I believe we are still eligible to contribute, but currently do not as we are opting to pay off the rentals with that money. Thoughts?

i agree they don't help you retire early, your situation is unique and i'm guessing you do the best thing for your situation.

11K/ year isn't that much.. but I sure like the tax diversification.

 

[Random]

I have struggled with this question for the past 5 years or so. Should I contribute?

Set one up for each of the wife and myself in 2005. Maxed both accounts for 4 years. Did very well in one (self managed - gold fund which blew up in those years) and not so well in the other (standard stock fund). Withdrew all contributions out of the profitable one in 2009/2010 and left the profit in. Both now are just sitting in a mixed stock fund and we haven't contributed for the past 4 or 5 years. I just don't see these account helping us "retire early".

So what did I do with the withdraws/money we were no longer contributing? Bought/paid off rental properties. I realize I could have gotten more loans and contributed to the Roth, but again, I just don't see how that helps me retire before 60. And please don't tell me about the equal payments rule for Roths. Those accounts won't be large enough for that rule to even matter until we're in our 60's anyway.

I believe we are still eligible to contribute, but currently do not as we are opting to pay off the rentals with that money. Thoughts?

i agree they don't help you retire early, your situation is unique and i'm guessing you do the best thing for your situation.

11K/ year isn't that much.. but I sure like the tax diversification.

On the subject of diversification, wife has STRS pension, and I do still have and contribute to (to get the match) my 401K. Not completely all our eggs in one basket.

 

[Doctor Detroit]

11K/ year isn't that much..

S-T-F-U

 

[phatdawg]

The wife and I max ours each year. We have a financial advisor that manages them.

 

[Skylord]

I struggle with investing conservatively and going with a dividend or swinging for the fences and try to manage growth stocks. Taking tax free money out of it is very attractive and it would be really nice to have a large chunk in there while retired. But at $5,500 a year, nobody is going to get rich.

 

[Ted Mullins]

Yes, I recently rolled over a Roth 401k from an old employer into a Roth IRA and am aiming to contribute as close as possible to the 2013 max and then maxing out 2014.

I voted for self managed since I don't pay anyone but actually had my uncle (financial advisor) tell me what to buy. I will likely just keep following the same breakout and not try to get too cute.

 

[Dentist]

11K/ year isn't that much..

S-T-F-U

well sure 11K is a decent amount of dough, but relative to the 35K you can put into your 401k as a family unit it's not.

And I meant compared to the overall amount in your portfolio. I figure the average FBG probably has a quarter million dollar portfolio (average age around here is mid-30's, that's a pretty reasonable portfolio amount... I'm sure most of you will laugh at that and say it's too low for FBG's, but not everyone is rich around here) and adding 11K to 250,000 just doesn't make that much of a dent.

 

[Skylord]

For those of you who have a manager or someone else advising, do you want to share what you are investing in?

 

[Dentist]

I struggle with investing conservatively and going with a dividend or swinging for the fences and try to manage growth stocks. Taking tax free money out of it is very attractive and it would be really nice to have a large chunk in there while retired. But at $5,500 a year, nobody is going to get rich.

i also struggle with this. I've decided to go relatively conservative because I can't write off any losses like i can in my cash management account, nor can i reload if it were to go bust.

and while at 5500 you can't get rich, for a lot of people (especially married) if they did 11K/year (more after they turned 50) they would be in a pretty good spot in 30 years.

 

[Zow]

Yes - rolled my state retirement into it three years ago (about 20k)

Haven't put anything else in

Invest with a guy I played college ball who reps from Northwestern Mutual

 

[Dentist]

For those of you who have a manager or someone else advising, do you want to share what you are investing in?

I don't quite understand people who have this type of account managed. Is it that hard to open a brokerage account and buy a target date fund? or open a brokerage account and buy a couple ETF's?

I mean, if you just bought VT (vanguard total world stock) and BND (vanguard total bond market) in a percentage that matched your risk you'd really be doing very well for yourself.

Especially since with most people we're talking about a portfolio that's under 100K

 

[Dentist]

Yes - rolled my state retirement into it three years ago (about 20k)

Haven't put anything else in

Invest with a guy I played college ball who reps from Northwestern Mutual

northwest mutual? 100% chance you're getting pwned with some high fees.

If there's only one thing you take away from this thread, it's that you should never invest your money with an insurance company.

And i say this whilst weeping that my 401k is with AXA Equitable because it's all i have at work.

 

[Lutherman2112]

opened one up 8 years ago, dont put a ton in it. wife has one also. we opened it with our 529. I have a guy but I can manage it

This is what we did, but a few years earlier (son is in college now).

 

[DocHolliday]

Sorry to take this thread slightly off topic. Seems like a good time to throw a simple question out.

I opened a 529 for my daughter but wonder if it is really necessary. Why can't I invest that money into my Roth and use that to pay for her college? I can get that money when I am 59.5 years old which is about when she is in school.

 

[Lutherman2112]

Sorry to take this thread slightly off topic. Seems like a good time to throw a simple question out.

I opened a 529 for my daughter but wonder if it is really necessary. Why can't I invest that money into my Roth and use that to pay for her college? I can get that money when I am 59.5 years old which is about when she is in school.

We opted for 529 for state tax breaks first. Also, whatever my oldest doesn't use in his account can be transferred to his sister's if we can't contribute as much to hers in the coming years.

I don't believe the IRS allows you to roll a 529 over into an IRA...it would be deemed as a non-qualified distribution from the 529, you would be taxed for the gains + 10% penalty. Furthermore, if you got state tax breaks from the 529...the state might want that tax money back.

 

[NutterButter]

Wife and I both backdoor the max for kids college.

I've got the whole thing in index funds.

 

[Dentist]

Wife and I both backdoor the max for kids college.

I've got the whole thing in index funds.

Can you tell me about how the Roth IRA works for kids college? Why not the 529?

Missouri for me has a pretty good 529 program (use after tax money, compounds without getting taxed, get a deduction on your state taxes) and so I've been building that up as my son is getting ready to be born, but never really thought about using my Roth money for that.. I figured retirement investing was for retirement.... school investing was for school.

 

[Doctor Detroit]

I think everyone should have one of these, even if you're only putting $50 a month in it.

You can withdrawal the principal without penalty, you can withdrawal relatively early tax-free at 59.5, and you can use almost any investment vehicle. Dentist for all his financial prowess, forgets that not everyone can max contribute everything. People barely save these days, if you can throw $50 a month in this do it. Add more as time goes on, or don't. But save something in this wonderful plan.

I used to max mine out, did for a long time when I really didn't have the money to. Now I choose to put more in my 401k (which I didn't have prior to 2005), but still put in $200 a month into my Roth.

 

[NutterButter]

Wife and I both backdoor the max for kids college.

I've got the whole thing in index funds.

Can you tell me about how the Roth IRA works for kids college? Why not the 529?

Missouri for me has a pretty good 529 program (use after tax money, compounds without getting taxed, get a deduction on your state taxes) and so I've been building that up as my son is getting ready to be born, but never really thought about using my Roth money for that.. I figured retirement investing was for retirement.... school investing was for school.

There's nothing specific about it for college. Roth allows you to withdraw principal at any time. So we're just going to use the principal for college. Roughly 18 years per kid at 5k+ per year is a nice start for college. The interest will just remain in their and be used for retirement. Since we'll have that extra money in the roth for retirement we'll offset that by reducing our 401k contributions during the college years and redirecting that money towards tuition. I was never a big fan of 529 plans. There's way too many conditions to justify the little savings. I want to be able to send my kid to whatever school they want without having to worry about whether its in state or not for instance. If the kids do get scholarships and we have roth money left over, I don't have to worry about any penalty for withdrawing that for non-school purposes. It all seems a lot simpler to me and I like simple. I've got enough stuff to worry about.

 

[Zerp]

Huge fan. Especially if your firm matches. Firm 1 matched $ for $ up to 15% of salary. Firm 2 was a formula, like $1 for first 10% and $0.50 for next 5%. I've maxed every year since 21. For 25 years. I manage the mix per instructions from an advisor. $960K as of Jan 1. Should top $1M in the next 1 year.

Remember. It's pre-tax. You start by investing 33% more, or $1 vs $0.65 post-tax $. Add the match and it's a no-brainer. $2 vs $0.65. I really encourage everyone to pay themselves first, before any other expenses or investment. You never miss it. Adds up.

 

[Dentist]

I think everyone should have one of these, even if you're only putting $50 a month in it.

You can withdrawal the principal without penalty, you can withdrawal relatively early tax-free at 59.5, and you can use almost any investment vehicle. Dentist for all his financial prowess, forgets that not everyone can max contribute everything. People barely save these days, if you can throw $50 a month in this do it. Add more as time goes on, or don't. But save something in this wonderful plan.

I used to max mine out, did for a long time when I really didn't have the money to. Now I choose to put more in my 401k (which I didn't have prior to 2005), but still put in $200 a month into my Roth.

even if you don't come close to the max, they are an excellent product.. it's the #1 retirement vehicle after a 401k at work WHERE there is a match.

if there is no work match, it becomes THE #1 retirement vehicle.

Even if you only have $25-50 a month to put towards it.. you should have an account.. And it couldn't be easier to set one up at a great brokerage like TD Ameritrade or Fidelity that have COMMISSION FREE ETF index funds that are perfect for you.

I preach about them to the girls I work with... (all to no avail, none of them set it up) but although cliche it's like the hardest step is that first step of just getting a brokerage account set up and picking a good index fund... from there you can put the thing on auto-pilot.

But instead people are so petrified just to get started that if they DO decide to get started they feel like they have to call someone to get it started.

I wish i could start some type of "financial consulting" charity where I would just sit someone down, click the buttons for them to set up their brokerage account, click the buttons for them to have an auto-withdrawl of $25-100 each month into their Roth, and point it to some fund like a target date or just total stock market fund... and they would be way better off for it.... the downside being of course that the minute I did that, we'd hit a bear market, they'd lose money, panic, and cash out and probably be bitter towards me.

 

[Dentist]

Huge fan. Especially if your firm matches. Firm 1 matched $ for $ up to 15% of salary. Firm 2 was a formula, like $1 for first 10% and $0.50 for next 5%. I've maxed every year since 21. For 25 years. I manage the mix per instructions from an advisor. $960K as of Jan 1. Should top $1M in the next 1 year.

Remember. It's pre-tax. You start by investing 33% more, or $1 vs $0.65 post-tax $. Add the match and it's a no-brainer. $2 vs $0.65. I really encourage everyone to pay themselves first, before any other expenses or investment. You never miss it. Adds up.

you're talking about a 401k

 

[Steve Tasker]

Yes

Yes

Self-manage (Vanguard)

 

[culdeus]

Sorry to take this thread slightly off topic. Seems like a good time to throw a simple question out.

I opened a 529 for my daughter but wonder if it is really necessary. Why can't I invest that money into my Roth and use that to pay for her college? I can get that money when I am 59.5 years old which is about when she is in school.

We opted for 529 for state tax breaks first. Also, whatever my oldest doesn't use in his account can be transferred to his sister's if we can't contribute as much to hers in the coming years.

I don't believe the IRS allows you to roll a 529 over into an IRA...it would be deemed as a non-qualified distribution from the 529, you would be taxed for the gains + 10% penalty. Furthermore, if you got state tax breaks from the 529...the state might want that tax money back.

It's only penalty on the gains. If you invested in any 529 and used their plans you are only looking at a tiny hit given the maximums on those accounts.

In your situation I'd just stop funding the 529 if it is a choice of one or the other.

 

[pats3in4]

I think everyone should have one of these, even if you're only putting $50 a month in it.

You can withdrawal the principal without penalty, you can withdrawal relatively early tax-free at 59.5, and you can use almost any investment vehicle. Dentist for all his financial prowess, forgets that not everyone can max contribute everything. People barely save these days, if you can throw $50 a month in this do it. Add more as time goes on, or don't. But save something in this wonderful plan.

I used to max mine out, did for a long time when I really didn't have the money to. Now I choose to put more in my 401k (which I didn't have prior to 2005), but still put in $200 a month into my Roth.

even if you don't come close to the max, they are an excellent product.. it's the #1 retirement vehicle after a 401k at work WHERE there is a match.

if there is no work match, it becomes THE #1 retirement vehicle.

Even if you only have $25-50 a month to put towards it.. you should have an account.. And it couldn't be easier to set one up at a great brokerage like TD Ameritrade or Fidelity that have COMMISSION FREE ETF index funds that are perfect for you.

I preach about them to the girls I work with... (all to no avail, none of them set it up) but although cliche it's like the hardest step is that first step of just getting a brokerage account set up and picking a good index fund... from there you can put the thing on auto-pilot.

But instead people are so petrified just to get started that if they DO decide to get started they feel like they have to call someone to get it started.

I wish i could start some type of "financial consulting" charity where I would just sit someone down, click the buttons for them to set up their brokerage account, click the buttons for them to have an auto-withdrawl of $25-100 each month into their Roth, and point it to some fund like a target date or just total stock market fund... and they would be way better off for it.... the downside being of course that the minute I did that, we'd hit a bear market, they'd lose money, panic, and cash out and probably be bitter towards me.

Another benefit is that once you retire and are eligible to withdraw the gains penalty free, you can withdraw them *at your choosing*. This is unlike the traditional IRA in which you have to take mandatory withdrawals upon hitting retirement age, forcing you to pay taxes on those withdrawals.

 

[zeamax]

I have a Roth IRA but quit adding to it about 5 years ago. I plan to never withdraw from it. It's my understanding that the kids can amortize the withdrawals over their expected lifetime, thus it can grow tax free for them also. Hopefully the govt won't steal these retirement accounts, $17,000,000,000,000 is a lot of money to print.

 

[snogger]

For those of you who have a manager or someone else advising, do you want to share what you are investing in?

I don't quite understand people who have this type of account managed. Is it that hard to open a brokerage account and buy a target date fund? or open a brokerage account and buy a couple ETF's?

I mean, if you just bought VT (vanguard total world stock) and BND (vanguard total bond market) in a percentage that matched your risk you'd really be doing very well for yourself.

Especially since with most people we're talking about a portfolio that's under 100K

My Roth isn't age based, we just choose the funds I want to spread the percentage around. Since the credit union offers the service free I take advantage of it.

 

[Dentist]

For those of you who have a manager or someone else advising, do you want to share what you are investing in?

I don't quite understand people who have this type of account managed. Is it that hard to open a brokerage account and buy a target date fund? or open a brokerage account and buy a couple ETF's?

I mean, if you just bought VT (vanguard total world stock) and BND (vanguard total bond market) in a percentage that matched your risk you'd really be doing very well for yourself.

Especially since with most people we're talking about a portfolio that's under 100K

My Roth isn't age based, we just choose the funds I want to spread the percentage around. Since the credit union offers the service free I take advantage of it.

free advice is cool, but I'm curious if they have you in funds with high fees... sometimes free isn't all it's cracked up to be.

 

[Zerp]

Huge fan. Especially if your firm matches. Firm 1 matched $ for $ up to 15% of salary. Firm 2 was a formula, like $1 for first 10% and $0.50 for next 5%. I've maxed every year since 21. For 25 years. I manage the mix per instructions from an advisor. $960K as of Jan 1. Should top $1M in the next 1 year.

Remember. It's pre-tax. You start by investing 33% more, or $1 vs $0.65 post-tax $. Add the match and it's a no-brainer. $2 vs $0.65. I really encourage everyone to pay themselves first, before any other expenses or investment. You never miss it. Adds up.

you're talking about a 401k

Yes. Sorry. Got sidetracked from OP.

 

[FUBAR]

Wife and I have Roths which I manage, but I switched to the TSP Roth last year.

Wife's Roth is all in Vanguard US ETFs. Mine was a collection of ETFs and individual stocks.

I'll put money into her account twice a year and max it. $500 into mine monthly.

I think everyone should have one of these, even if you're only putting $50 a month in it.

You can withdrawal the principal without penalty, you can withdrawal relatively early tax-free at 59.5, and you can use almost any investment vehicle. Dentist for all his financial prowess, forgets that not everyone can max contribute everything. People barely save these days, if you can throw $50 a month in this do it. Add more as time goes on, or don't. But save something in this wonderful plan.

I used to max mine out, did for a long time when I really didn't have the money to. Now I choose to put more in my 401k (which I didn't have prior to 2005), but still put in $200 a month into my Roth.

If you're self-managing, $200/month can get eaten quickly by purchasing fees. I assume you're using a vehicle you don't pay for each purchase, but people need to keep those costs in mind if buying stocks or ETF. It's the biggest reason I max each kid's ESA at a time and only buy into hers twice a year.

 

[snogger]

For those of you who have a manager or someone else advising, do you want to share what you are investing in?

I don't quite understand people who have this type of account managed. Is it that hard to open a brokerage account and buy a target date fund? or open a brokerage account and buy a couple ETF's?

I mean, if you just bought VT (vanguard total world stock) and BND (vanguard total bond market) in a percentage that matched your risk you'd really be doing very well for yourself.

Especially since with most people we're talking about a portfolio that's under 100K

My Roth isn't age based, we just choose the funds I want to spread the percentage around. Since the credit union offers the service free I take advantage of it.

free advice is cool, but I'm curious if they have you in funds with high fees... sometimes free isn't all it's cracked up to be.

Naw ... they don't have funds themselves.. I started with my Roth and a straight mutual fund with a financial institute. Then realized I was getting nothing from them yet paying a high fee. So switched to my credit union advisory who gets paid a salary, with no "bonus" from my investments. So he always works to find the best return with low fees. Doesn't hurt that we have our savings, checking, mortgage and a car loan through them so they want to keep our business.

 

[Tom Hagen]

Where is the option that you make too much money?

because with the backdoor roth ira there is no such thing as "make too much money"

i make too much money, i still got my 11K in there

This isn't always true. If you already have a traditional IRA with tax deferred contributions the backdoor Roth contribution may not work.

 

[Dentist]

Where is the option that you make too much money?

because with the backdoor roth ira there is no such thing as "make too much money"

i make too much money, i still got my 11K in there

This isn't always true. If you already have a traditional IRA with tax deferred contributions the backdoor Roth contribution may not work.

good point, i stand corrected

 

[Dentist]

Wife and I have Roths which I manage, but I switched to the TSP Roth last year.

Wife's Roth is all in Vanguard US ETFs. Mine was a collection of ETFs and individual stocks.

I'll put money into her account twice a year and max it. $500 into mine monthly.

I think everyone should have one of these, even if you're only putting $50 a month in it.

You can withdrawal the principal without penalty, you can withdrawal relatively early tax-free at 59.5, and you can use almost any investment vehicle. Dentist for all his financial prowess, forgets that not everyone can max contribute everything. People barely save these days, if you can throw $50 a month in this do it. Add more as time goes on, or don't. But save something in this wonderful plan.

I used to max mine out, did for a long time when I really didn't have the money to. Now I choose to put more in my 401k (which I didn't have prior to 2005), but still put in $200 a month into my Roth.

If you're self-managing, $200/month can get eaten quickly by purchasing fees. I assume you're using a vehicle you don't pay for each purchase, but people need to keep those costs in mind if buying stocks or ETF. It's the biggest reason I max each kid's ESA at a time and only buy into hers twice a year.

totally agree, which is why if anyone asks me about setting up a brokerage account for their Roth I always point them towards TD ameritrade or fidelity which have commission free ETFs of good companies like ishares or vanguard where they won't have to worry about the transaction fees in or out