Dave always says to invest in growth stock mutual funds. What’s the difference between Growth Stock Mutual Funds and just plain old Mutual Funds.
He specifically says (from the first source):
“Mutual Funds
Here’s my approach. I select mutual funds that have a winning track record of more than 5 years and preferably more than 10 years. I don’t look at their 1 year or 3 year track records because I think long term. I spread my investing evenly across four types of funds. That means I put 25% of my investment amount into each of the following:
• Growth and Income Funds
• Growth Funds
• International Funds
• Aggressive Growth Funds
But before you get to mutual funds he states:
“If you receive a company match in your 401(k), 403(b), or TSP; invest in those plans, up to the match, first. Once your contribution equals the company match, fully fund a Roth IRA for you and your spouse. If you’ve maxed out your contribution to your Roth IRA and still have money to invest, invest the rest in your 401(k), 403(b), or TSP.”
For more of his advice see the source links.