403B vs ROTH
If I can only afford to invest $18,000/year, should I put it all in my 403B or should I divide it between my 403B and ROTH IRA? My company does not provide any match for my 403B contribution. I’m 53 and probably will have to work until I’m 65. I earn about $100,000. Thank you.
Terry Says
Aha, you provided the info I needed to help you. Shocking that your employer does not match your contribution. In that case, and since you aren’t in a high tax bracket, I’d suggest opening a roth IRA at Fidelity or Vanguard. At your age, you can contribute $8,000 in 2025. Divide it inside the Roth IRA this way:
40% in the S&P 500 stock index fund, 40% in the equity/income fund, an d20% in a govt securities money market fund.
You can do that all at once, or just open the Roth with perhaps $1,000 —and keep putting in $1,000/month for the rest of the year, dividing it as above.
You have 12 years, so don’t panic if the stock market goes down. Keep doing that every year, and the odds are you’ll come out way ahead, based on history.
