I wanted to get everyones thoughts on opening a new account. Should I go traditional IRA or a robo advisor brokerage? My wife and I both max out our 401ks and she also puts money into a 457b, but I feel we need to be doing more. we are over the income limit for a Roth although we could do a backdoor, but im guessing we still have to pay the taxes on the roll over amount?
Pretty much any retirement plan conversion into a Roth is going to have tax implications. It's generally best to convert to a Roth when the stock market is down, so you are paying fewer taxes and giving your Roth a nice low cost basis to start from.
You could just start a normal individual brokerage account and put some cash in there to grow and decide what to do with the money down the road. Even an extremely low risk investment into money markets, US Treasury dividend ETF's and others are paying north of 5%, with very little risk to your principle cash....
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I don't know about robo advisors, but I have a regular brokerage account. We have a well funded 403B and I have a regular account that I can do with as I want. Invest/trade as I feel, just have to pay attention to taxes.
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A friend uses a robo advisor. Claims he outperforms the S&P substantially. I enjoy doing it myself...but the robo advisors offer daily tax harvesting which is a plus if not trading in your IRA.
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