I'm a bit hesitant in locking up 6k for so long because I plan on buying a house maybe in mid/late 20s to early 30s and could just put that extra money into personal portfolio and (contribute employee match or max into traditional ira each year) - curious to hear some professional opinions here
| +161 | Evercore > Goldman and I don’t think it’s particularly close anymore | 58 | 2h |
| +152 | Article: Why UBS's Asian M&A bankers are thriving and UBS's American M&A bankers are not | 17 | 11h |
| +124 | I am a drunk MD AMA | 40 | 1d |
| +86 | UBS Offer Day | 30 | 1d |
| +75 | Santander IB? | 10 | 3d |
| +68 | I hate Wells Fargo | 19 | 7h |
| +51 | No return offer - feeling like a failure is an understatement | 20 | 2h |
| +45 | How cooked am I as an incoming WF IB SA 2027? | 17 | 5h |
| +43 | WF Return offers | 28 | 2d |
| +40 | 2026 Investment Banking Return Offer Climate | 25 | 8h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
b
Just as a note: the IRS allows you to use up to $10K from your IRA tax free if used to purchase your first home.
appreciate it bro, that sounds sweet and changes the equation a lot
You can withdraw your contributions early from a roth. Will 6k really make that big of a difference 6-8 years from now?
Yep but I know they apply annoying penalties if you withdraw early, with that being said - do you think its smart to do the 6k now that I still qualify?
No you pay penalties on your gains. Your contributions can be withdrawn without any issues.I generally think any money you can grow tax free for 30-40 years is a good idea.
Would second opinion that any tax-free money is worth it and won't heavily impact your ability to buy a house.
Also, FYI maximum is $6000 for FY2022 and $6500 for FY2023.
Do you know if roth IRA is by fiscal year? meaning I can do 6k now before the end of 2022 and another 6k in 2023 since IB starts in July and I will be under the dollar amount income limit
Yes, that’s right. You can also get around the income limit by contributing to a traditional IRA and then rolling over to a Roth IRA.
6k isn't much in the grand scheme of things, can put that in if you have it liquid. Once you start I would generally direct some of your savings into personal if you want to buy a house in a few years (i.e. meet the employee match, but not absolute max of traditional IRA) as the withdrawal penalties beyond the $10k allowance will really bite
Appreciate the advice. Do you max out your IRA or just do up to the employee match? My 6k is liquid, I have a bit of savings and have nowhere to invest it given the rough public markets so I have just been buying a bunch of treasury bills for the tax incentives but having it completely tax free in a roth would be great
Rem accusantium assumenda voluptates aut. Harum distinctio quisquam enim quasi. Totam fugit quam ea pariatur consectetur sint. Nihil cupiditate quo facilis et.
Est et occaecati eos sint error consequatur asperiores. Quia recusandae beatae sit sapiente. Ut non ut dolores aliquam quis velit.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...