Dividing your money between an employer-sponsored retirement plan and a Roth IRA lets you deversify your savings between taxable and tax-free income.

Contributing to your company's retirement plan is a smart and safe bet, but if you have matched your company's full contribution amount , move your money to a Roth IRA. As a single person, you can invest the max amount of $4,000 in a Roth in 2007 if your income is $99K or less, and make a partial contribution if your income is between $99K and $114K. If you have maxed out tyour IRA, you can save even more by switching back to your company's retirement plan.

Dividing contributions between an your company's retirement plan and a Roth IRA is a good idea because it lets you diversify your retirement savings between income that is taxable or tax-free . With your company's sponsored plan, you get a tax deduction up front but your money will be taxed when you make withdrawals in retirement. With a Roth account, there's no up-front deduction, but your retirement withdrawals are tax-free.