I've had a lot of questions regarding personal finance, and I figured this would be the best place to get some good answers. To start, I made over $60,000 in 2013 and just over $44,000 in 2012. I make videos on YouTube, and currently run 4 YouTube channels; my revenue is accrued through advertisements that are displayed on my videos, which have been averaging over 4 million views a month.
In the past, I've filed my taxes as an individual (paying self-employment tax), but I recently set up an LLC, so I will now be using a TIN for my taxes. I've been contributing the maximum amount of $5,500 each year to a traditional IRA, but I'm interested in switching to a Roth IRA. My traditional IRA is a T. Rowe Price and Vanguard target date retirement fund (set for 2060).
I generally see between $5000 and $10000 a year in business expenses, which I list as deductions when filing taxes. I understand that I should probably consult with a financial adviser, but I just want some sound advice from others before consulting a professional.
A few last things to consider: I expect my YouTube income to grow steadily, but not reach above 100k a year. I am also attending college for free on a Air Force ROTC scholarship, so I will commission as an officer in the Air Force after college. So, I expect to be making a median of 160k a year in about 8 years from now (from my YouTube and Air Force income combined).
Here are my questions:
Would it be wise for me to transition to a Roth IRA instead of a traditional IRA? So far, all of my research indicates that it would be wise, but I would like an outsider opinion.
Instead of investing solely in a Roth IRA or Traditional IRA, should I do a mix between the two? For example, $3,000 a year in Roth IRA and $2,500 a year in Traditional IRA?
If you were in my position, how would you balance your Roth IRA portfolio? For example, would you recommend just setting up a target date fund that is managed by someone else, or would you suggest actively managing the account?
Thanks in advance.