Save For College Before A Roth IRA

Jeff wants to invest in a Roth IRA and asks Dave what mutual funds he should invest in while saving for college.

QUESTION: Jeff wants to invest in a Roth IRA and asks Dave what mutual funds he should invest in while saving for college. Dave tells him that at this point, there is an investment slightly more important than a Roth IRA.

ANSWER: Before you invest in a Roth, you should pay for college. The best investment you can make is in you. If college is taken care of and you’re going to do some money in a Roth, I would probably go into a growth stock mutual fund—something calm with a long, long track record. You can sit down with an Investing Endorsed Local Provider who will help you.