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Can I contribute to my IRA for 2017, 2018 and 2019 this year? I have extra cash that I don't know what to do with.

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zipjob said:   Can I contribute to my IRA for 2017, 2018 and 2019 this year? I have extra cash that I don't know what to do with.
  No.
Jan 1, 2017 is not far away.

Nope. Blow it in beer and hookers. You only live once.

burgerwars said:   Hookers and Blow
  
What do I do with the leftover money though? 

zipjob said:   
burgerwars said:   Hookers and Blow
  
What do I do with the leftover money though? 

Try two at the same time.
If you have money leftover, you are not doing it right.

fwuser12 said:   
zipjob said:   
burgerwars said:   Hookers and Blow
  
What do I do with the leftover money though? 

Try two at the same time.
If you have money leftover, you are not doing it right.

  
Or buy a Crown Vic. 

Or just stick the extra money in an index fund like Vanguard's S&P 500.index fund. I think it's up about 6% since the election. Then when you can contribute, sell it and stick it in the IRA.  

I left extra money left over. May I make contribution to IRA for years 2017 up to and including year 3,092 AD?

Now may not turn out to be the ideal time to dump money into an index fund.  Or maybe the Dow is going to blow past 20,000.  Or drop to 10,000 when Trump starts an international conflict.  Who knows?

Personally, I wouldn't be rushing to put new money into this market.  At least not in a lump sum.  Good luck!

rsmo2222 said:   Now may not turn out to be the ideal time to dump money into an index fund.
 

Putting money into an IRA doesn't necessarily mean buying an index fund that's long the market; he could buy a fund that shorts the market, etc.

zipjob said:   Can I contribute to my IRA for 2017, 2018 and 2019 this year? I have extra cash that I don't know what to do with.
You could put it in a taxable brokerage account, ideally one that has an opening bonus.  Or a bank account with an opening bonus.

rsmo2222 said:   Now may not turn out to be the ideal time to dump money into an index fund.  Or maybe the Dow is going to blow past 20,000.  Or drop to 10,000 when Trump starts an international conflict.  Who knows?

Personally, I wouldn't be rushing to put new money into this market.  At least not in a lump sum.  Good luck!

  What the hell difference does it make it is "new" money? Please don't say something stupid like taxes.

KatoKrazy said:   
rsmo2222 said:   Now may not turn out to be the ideal time to dump money into an index fund.  Or maybe the Dow is going to blow past 20,000.  Or drop to 10,000 when Trump starts an international conflict.  Who knows?

Personally, I wouldn't be rushing to put new money into this market.  At least not in a lump sum.  Good luck!

  What the hell difference does it make it is "new" money? Please don't say something stupid like taxes.

  Even though the premise of your point is correct, I'll bite.

There's a psychological risk when an investor doesn't understand his personal risk tolerance when the market can fluctuate, 10%, 30%, perhaps 50% in a year. If they overcommit, instead of seeing a buying opportunity, they could very well second guess themselves, and miss out on the market returns many rely on for growth. Even knowing this, it's tempting to call the peak of the stock market, and wait for the correction.

The second thing I'd like to mention is taxable may be more tax efficient then an IRA for stocks for a buy and hold investor (I was told we all died in the great recession though). Distributions from an IRA are treated as ordinary income, but long term capital gains aren't triggered until sold, and even then at a much lower rate.
(This is not tax/legal advice, see your adviser)

If you had used rsmo's advice before the election, you'd had missed the rally. The market will revert towards it's mean growth rate, and it's luck that plays a huge factor in a good entry price.
The best way for "new money" to get market exposure is to buy a SP500 mutual fund is with automatic investments over a year or two.
Yes, full exposure on day one would increase returns statistically, but human beings and money are not very logical
 

[Advice so good, FWF decided to dupe it.]



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