Optimal Finance Daily - Financial Independence and Money Advice 3275: Where Do I Invest After Maxing Out Retirement Accounts? by Chris Reining on Building Wealth and Optimizing Taxes
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Sep 7, 2025 Learn how to invest wisely after maxing out retirement accounts with practical strategies that target wealth building. Explore various options for taxable investing, balancing between calculated risks and financial security. Personal anecdotes provide insight into the effectiveness of sticking to index funds. Discover how to tailor investment choices to align with long-term goals and manage taxes effectively. This discussion is perfect for young professionals looking to take their financial journey to the next level.
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Wealth Comes From Risk, Not Haste
- Getting rich fast is more about taking appropriate risk than doing more or finding shortcuts.
- People chasing shortcuts often lose money because they ignore the role of risk in returns.
Order Your Contributions
- Fund pre-tax accounts enough to get any employer match and then max post-tax retirement accounts.
- After that, prioritize taxable accounts before non-deductible post-tax accounts.
Use The Backdoor Roth
- Use a backdoor Roth if your income exceeds Roth contribution limits by contributing to a traditional IRA then converting immediately.
- The tax due is typically zero if no pre-tax IRA balance exists when you convert.