Dear Dr. Don,
I am 52 years old and have $155,000 in my 401(k) and another $25,000 in a Roth individual retirement account. I am four years away from paying off my house. And in three months, I will have paid off two consumer loans. That means I'll have an extra $1,000 every month to invest. Do you think it would be better to put the bulk of that each month into my Roth IRA or my 401(k)? Or possibly, I could split the money between the two accounts. I've basically paid off all the interest in my house. I am not sure it would be wise to put any of the extra money in.
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