[USER]

I just realized that I did not max out my contributions to my Roth IRA for 2024 yet.

I have about $5000 I can add. With the market doing what it’s doing would I be better to keep the funds in a HYSA?

I am mid 50s.

[Garret]

The IRA is just the container. Investing in the market is one option you can choose to do with that money within the IRA container.

You can also contribute to the IRA and leave it in the settlement fund until you feel it’s more appropriate to invest.

You can DCA $500, $1,000 a week or a month into the market for example or whatever else you feel comfortable with.

[Erica]

Sincerely, what is the market doing and how did you get the inside scoop?

In reality, the market fluxes and attempts to time the market always lose.

[David]

When the market declines it’s even more of a reason to invest.

I’d be more worried when it’s at all time highs

[Tom]

Nah, wait a year or two until stocks recover and go higher. You always want to buy high and sell low.

(Bit of sarcasm there…)

[Chris]

First, I will add the money to the tax advantaged account regardless. Technically, you can invest it however you like and some bond funds pay similar to a HYSA.

Second, I wouldn’t play the game of market timing. It is incredibly difficult to get right.

As they always say “time in the market is more important than timing the market.”

[Ken]

Why wouldnt you fund it and not invest since its fund or lose chance to fund.

That said, don’t try to time the market.

[Johnathan]

If it’s long term money why wouldn’t you want to buy at a nearly 10% discount from the all-time high?

People that ask the question you did often wait & then when the market fully recovers they then end up asking “should I wait for the market to dip a little before I invest?”

[Carly]

Depends on whether you’re about to lose your job and have enough emergency money to make it through a recession, should one occur.

[John]

Worst case put it in Roth account and a money market, CD, or Bonds. Just get it in the proper account!!

[Chad]

I would add to retirement. If you are uncertain keep it in cash and don’t invest inside the Roth.

But I would dollar cost average over the next months and sprrwd it out.

But you can at least max it out

[Vincent]

When do you really think you will cash this out this sum of money? Keep in mind that Americans at your age have on average 30 more years of life expectancy.

Many will make it to age 100+.

If you don’t think you will be expiring sooner, then it’s not logical to let short term worries over current events steer your long term retirement investing.

Remember — the successful buy-and-hold long term investors did not have smooth sailing every year.

They had to stick it out through lots of rough economic weather.

[Joel]

Contributions to a Roth IRA are all about avoiding income taxes on the earnings on your balance. It does not matter how this money is invested.

I could just be sitting in a money market fund or a CD and having that in a Roth IRA will still save you on taxes.

There is no scenario where a taxable account beats a Roth IRA … unless your plan is to lose money.

[Webber]

Currently the market is on sale. But it could really be even *more* on sale tomorrow….and the day after…and the day after that.

Or it could be higher tomorrow. Nobody knows.

If you’ve got the money put it in. In 10-15 years from now you’ll be glad you did.

[Author]

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