I am now debt free. Yeah!!! I am now on Baby Step 4. Invest 15%.
Dave says to invest 15% of your pre-tax income.
He recommends four types of mutual funds that get 25% each.
He also says do your 401K and a Roth IRA.
My question is how is that 15% divided up?
If your 401k is 3% and your roth is 3% then do you have 9% left over for the mutual funds?
If you have 9% left over for mutual funds is the remaining 9% divided up between the 4 different categories?
So G&I would get 2.24%
Growth would get 2.24%
International would get 2.24%
and Aggresive would get 2.24%
and that would equal the remaining 9%?
That is how I understand it and if someone can either verify that that is correct or correct what I am saying is wrong.
Source: http://rothira.soluti-ons.com/roth-ira/can-a-dave-ramsey-fan-help-me-out-on-baby-step-4/
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