With the Fed signaling potential rate cuts later in 2024, bond yields have eased slightly. Investing Roth IRA strategies might tilt towards equities over fixed income, benefiting from the anticipated liquidity push. Financial sector stocks could see valuation boosts under a lower-rate regime. This is why financial guru Suze Orman wrote that Americans should be putting “every single cent” into a Roth account in her book, "The Ultimate Retirement Guide For 50 Plus". Both 401(k) and 403(b) accounts have high annual contributions limits. In 2024, employees can contribute up to $23,000, tax deferred, to these plans. Employees age 50 and older have the option of contributing an extra $7,500, which means the contribution limit for these individuals is $30,500. Small-cap stocks have rebounded 5% in Q2, showing signs of cycle rotation. Investing Roth IRA contributions into Russell 2000 ETFs could capture outsized gains if economic momentum continues into Q3.
