re: Does the middle class not invest?

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my work contributions are going towards a roth 401k. you would suggest a separate roth ira as well?

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Yes, take advantage of Roth IRA. Roth IRA is a better vehicle than a 401k (no required minimum distributions, you can withdraw contributions penalty free, more investment options) You could even put the house downpayment funds into Roth IRA and pull out the contributions when it's time to buy if you dont have another source. If you really want to diversify tax treatment you could go traditional 401k. (Do you expect your tax bracket to be higher or lower in retirement?) Common generic advice is contribute to 401k up to match, fund Roth IRA, then fully fund 401k.