Interrupter CheckmarkInterrupter IconFacebookGoogle PlusInstagramGroupRamsey SolutionsTwitterYouTubeExpand MenuStoreCloseSearchExpand MenuBackStoreSign in

Ask Dave

Where to Save?

Crystal just started a new job making $50,000 a year, and she has been offered a 401(k) with no match. Should she put money into the 401(k) or a high-yield CD? Dave has another recommendation.

QUESTION: Crystal in New York is 26, and she’s debt-free. She just started a new job making $50,000 a year, and she has been offered a 401(k) with no match. Should she put money into the 401(k) or a high-yield CD? Dave has another recommendation.

ANSWER: I would do a Roth IRA up to $5,000 a year for your first investment into good growth stock mutual funds that have a long track record. The Roth IRA growing tax-free, mathematically, will be superior to a non-matching 401(k).

If you wanted to do more than the $5,000 going into the Roth IRA, you could put some into the 401(k), again with good growth -stock mutual funds that have been open at least five years—preferably 10 years or more.

Thank you!  Your guide is on its way! 

Find the Right Financial Advisor for You

Find the Right Financial Advisor for You

Ask your financial advisor the right questions with our free interview guide.

Find the Right Financial Advisor for You

Ask your financial advisor the right questions with our free interview guide.