So I have $580,000 that I want to put into the market. Of that, I've decided to put $180,000 into tax qualified retirement accounts while the remaining ($400,000) will be placed into a retail brokerage account.
My issue is this: because of the yearly contribution limits, it's going to take me several years to move all of that $180,000 over.
While slowly contributing each year, I'm considering grouping the funds waiting to be transferred (of the $180,000) with the remaining $400,000 in the brokerage account. It will be subject to cap gains tax when I withdraw my limit each year but I believe the yearly increase will outweigh the taxes owed.
The other option would be to keep the $180,000 in a high yield savings account while I slowly transfer it all over year after year. Obviously if it's going to take 5-6 years to transfer over the entire balance that is a lot of money lost on potential appreciation I could be seeing if it were with the rest in the market.