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Note for next year IRA contribution

8 Responses to “Note for next year IRA contribution”

1. Aleta Says:
   January 20th, 2008 at 10:40 am
   Are you talking about contributing to a Money Market IRA account or a Regular Money Market account with the i.e. Vanguard money market account? I do this all of the time. It is so much easier to be able to buy on the day that I want and the trade goes right in that day.

2. kimiko Says:
   January 20th, 2008 at 10:47 am
   I'm talking about taxable MMA at Vanguard which I can have under my IRA. The speed which the exchange takes place is the main reason. Whenever I send in additional contribution, it always took them a few days to show up and of course by that time, I can't get the price I wanted anymore.

3. Aleta Says:
   January 20th, 2008 at 11:01 am
   Yes, I had the same problem. It would take days for my contrbution to get there. I ended up sending mine and husbands in the same envelope. Even if they take the money our of your bank, it takes a while too. Like you, I soon learned to have Vanguard to transfer money from my brick and mortar money market account into my Vanguard Taxable Money Market Account. You can also have a Money Market Account as one of your funds in your IRA. Some people like the idea of having the cash available and yet not being taxed on the money market. When I was with a different mutual fund company, I had this and used to buy shares from the IRA money market fund as well. But, Like you, I have the ability to buy on the day that I want the way you and I both have it.

4. MariRDH Says:
   January 20th, 2008 at 12:16 pm
   Oh, great idea! I never thought of this. I was always annoyed that I'd send the money a few days before I wanted to buy but it always seemed to take much longer! This is a great way to get what I want when I want it.

5. fern Says:
   January 20th, 2008 at 02:07 pm
   You can try timing your stock mutual fund purchases by watching the DJIA and when there's a big drop, like this past Friday, i like to wait til around 3:30 p.m., just to make sure it's still down (market closes at 4) and then place my transfer/buy.
   
   Sometimes the markets are up and down all day long, so that's why i wait til just before the close of the day to make my buy.

6. disneysteve Says:
   January 20th, 2008 at 03:40 pm
   Market timing doesn't make sense any time and even less so in your IRA since that is money you won't be touching for so long. I say just put the money in as soon as you can and leave it be. Over 20 or 30 years, the day you picked to make the investment will really have no effect on the end result.

7. terri77 Says:
   January 20th, 2008 at 05:47 pm
   My Roth is with USAA. IF I ever transfer out of my employer's plans then I'll open a Vanguard account. For now I have automatic deduction on my Roth with USAA. They default to the 15th if you don't choose a date. If the 15th is a weekend or holiday, the trade takes place the last trading day prior to the weekend or holiday.

8. Broken Arrow Says:
   January 21st, 2008 at 06:20 am
   Hmm. Does Vanguard have a sweep? By that, I heard that some brokerages (e.g. Fidelity anyway) have money market funds that they will automatically "sweep" your unused cash into. Of course, that only works within the brokerage.
   
   That's how I plan on having my IRA set up as well (but haven't gotten to that point yet ).
   
   Please remember Money Market Funds can also count as a part of your conservative investments.
   
   Finally, I have to reiterate Steve's warning. Please don't try to time the market. We are already in a buyer's market, and if it makes sense for you to buy now, then feel free to do so. Otherwise, I wouldn't worry about it.

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