Roth IRA, college choices
I have about 200k in index funds VgTAx and VITAX and some individual names, how can I move this into an IRA and Roth?
2) I planned on using stocks for my sons’college tuition ( although I do have a few semesters of College Illinois-purchased in late 1990s thank you Terry) now I’m regretting not selling February 14 when I was getting all time high alerts.
3) my son can go to UIUC Champaign-Urbana,but not for his major. He can also go to Iowa State for Engineering (30K) or University of Iowa ( but can’t afford at 44k). Advice?
Terry Says
Whew. My advice is to come back to reality. Your son should get his undergrad in Illinois, where you can use your plan. It has a great engineering school. If he wants to go on to graduate school later, he can take out his own student loans.
Second, you can’t just “move” these investments into an IRA. But if you qualify by having earned income, you can open a Roth IRA at Vanguard, and put away up to $6,000 BEFORE APRIL !5, when your 2019 tax return is due. If it’s a traditional IRA you can get a deduction (if you qualify and are not otherwise covered by a plan) or you can still open a Roth, which doesn’t give you a deduction. And if you want to be aggressive, you can contribute for 2020 as well, at far lower prices than we’ve seen recently.
I cover all of this in my new edition of The Savage Truth on Money. Order it at my website or on Amazon.com — Not a sales pitch — you clearly need to learn some of the basics, and I wrote this book for YOU!
