Allocating money for investment

Question

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?

Answer 1

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.