A listener wants to know if it is better to put a lump sum into his Roth IRA at the beginning or end of the year. Art shares his thoughts, not just about Roth IRAs, but emergency funds as well.
1. Your emergency fund should be a relatively stagnant number.
2. Removing money from your emergency fund should be for emergency purposes only.
3. We recommend putting 15% of your gross income toward retirement every time you get paid.
4. If you have a lump sum, it is usually best to invest at one time instead of spreading it out.