Tips to get it done: To make hitting IRA contributions more doable and palatable from a budgetary standpoint, put them on autopilot, instructing your investment provider to deduct whatever amount you can swing from your checking account on a monthly basis.
If you’re tapping it for ongoing healthcare expenses and/or you need to maintain a minimum balance in the savings account, it’s wise to maintain a balance in the savings option even as you’re directing additional assets to the investment option.
Finally, estate plans might have implications for beneficiary designations; if you’ve created a trust, for example, the trust might now be the beneficiary of a given asset versus a human being.
Tips to get it done: Because the “right” beneficiary designation can change over time, check them annually as a component of your annual portfolio review.
But if too much time elapses and you invested in something that has enjoyed nice gains since you bought it, you’ll owe ordinary income tax on that appreciation when you finally get around to converting.
