Jumping into Roth IRA
Had a nice conversation with AI that convinced me to jump in. Didn’t realize how easy the backdoor Roth was and that I qualified to do so at all. Posting details here to see if there’s anything that I’m completely overlooking.
I already max out TSP contributions annually ($24,500) with a blend of C/S/I funds, heavier in C. So I have market exposure. (I always thought I couldn’t do this AND the backdoor Roth)
I’m planning on opening up the Roth via the backdoor this upcoming week with a plan of fully funding it $7,500 and another $7,500 in January.
I’d like to buy XLF and sell out of the money call contracts, haven’t looked at what’s out there but would be aiming for delta of 0.20-0.25. Once there’s enough money in the Roth I’d like to transition to SPY calls.
Once I’m selling more than one contract I’d ladder them. I’d also like to actually use the account for covered calls because I’ve already got the boring set and forget TSP.
25 years away from being able to collect without penalty so we’ve got time.
Thoughts?