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Context

So I'm allocating around $500 per month for investments and I have enough savings for about 6 months should anything happen. I have no debts and I'm living a comfortable life in my early 20s in the US.

Currently I have $300 go to a Roth IRA and $200 in an investment account. I know that I probably won't go over the bracket for not being able to put money into a Roth IRA anytime soon (1-2 years at least). With the current rate, I won't maximize the Roth IRA this financial year. (I did last year due to a bonus.)

The company does not have a 401k or related and effectively I'm on my own with the Roth IRA.

Question

Should I reallocate the monthly investment money and try to fill that the Roth IRA over a normal investment account? I don't foresee a problem in the nearby future financially as I don't plan to buy a big ticket item like a car or house. Related, is there a better use for the $500 per month than what I'm doing?

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Sounds like you're doing fine, though somewhat fuzzy:

  1. what is your objective (current income, long term growth, etc.)
  2. what is your tax situation?

  3. how are you allocating the $500/month? Are you doing dollar cost averaging into funds, accumulating enough $$ to buy round lots of individual stocks, market timing, etc.

    The summary suggestion: max out the ROTH first, then with $$$ left over, do the after tax, low-cost fund, monthly dollar cost averaging approach.

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  • 1. Long term is my goal. 2. Can you clarify that point? 3. I'm doing dollar cost averaging into funds.
    – unsignedzero
    Sep 27, 2015 at 15:31
  • 2. What is your tax bracket currently, and is it likely to change? Are you likely to be employed overseas (and subject to threshold exemption)?. 3. of the fund(s?) you choose, what are the objectives?
    – michael
    Sep 29, 2015 at 20:46

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