<prompt> Human: Common advice is to do things in this order 1 get an emergency fund, 2 max out your 401k, then 3 get an IRA - all before you move on to other investing. But why dump everything into retirement when you may need liquid assets for a down payment of a home, wedding, car, etc.? Here is my story, I would love the advice! I am in my early 30s, own my own place, and have 12k in my emergency fund in a high interest savings account at my credit union at 2. I am putting 5 into my 401k, so that I get the 5 matching from my company I make around 110k but live in an expensive city. I also have a small pension coming to me - anywhere between 10-30 of my top income depending on how much longer I stay with the company. Most advice says to put extra money into an IRA, but I would prefer money that could be accessed with less penalties if I decide to take it out to buy a bigger home or have kids. Maybe an ETF or Mutual funds. Is this a bad idea? Should I just open an IRA with the extra money?Thanks!Assistant: Id go ROTH IRA - you can save for retirement and pull out your contributions tax free for anything, not just a house like traditional.Human: ?? You may withdraw your contributions to a Roth IRA penalty-free at any time for any reason, but youll be penalized for withdrawing any investment earnings before age 59 12, unless its for a qualifying reason. Plus you pay tax...  <response>: yes, your CONTRIBUTIONS - not your earnings 