I maxed out my 401(k) ($19,500) and family HSA ($7,300) this year. Up until about February of this year, I was also maxing out mine and my wife’s Roth ($500 per month apiece). So I still have about $11K that I can dump into the Roth prior to April 15 of next year for 2022, right? I am going to get back on track in January with bi-monthly contributions.
I will be getting a very nice annual bonus for 2022 sometime around March. I’m torn between buying $11K all at once, especially considering the roller coaster ride we’ve been on this year. I’m equally concerned about missing the compounding of this $11K over the next 20-25 years before retirement if I miss the window. My question is: should I dump all $11K into the Roths in March or should I put the money into my after-tax brokerage account that is heavily tilted towards cash equivalents (I use it for saving money for big purchases: vehicles, home improvements, etc.).
My fear is that I am used to dollar-cost averaging. I’d really hate dumping $11K in all at once and seeing several thousand of it disappear overnight in the event of a short-term selloff.
Thanks!