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Ask Dave

Invest the Rest

Scott is trying to figure out how to invest the remaining 12% after the 3% his employer matches. Dave says invest in a Roth IRA.

QUESTION: Scott is investing 3% that his employer matches. How should he handle the remaining 12% that Dave recommends to invest? Dave tells him to control his spending habits and invest in a Roth IRA.

ANSWER: Invest in a Roth IRA after that 3% match. You can put $2,000 in your name and $2,000 in your wife’s name. As you do this longer and longer, you’ll find more room in your budget to invest money. Most people can pull the 15% off.