<p>I'm not exactly sure if this is the right place to ask this but there's no harm in trying. I am 19 and an engineering major. I've heard people older than me talking about how they are losing their pensions/retirement and that they wished that they would have started started saving money when they were my age. That got me thinking that I should start saving (or at least thinking about how I should go about it) as soon as possible. I have a savings account of course, but I've heard that I-bonds/EE-Bonds (because of interest rates) and RothIRA is the way to go. Does anybody have any suggestions or comments to perhaps point me in the right direction.</p>
<p>A Roth IRA is a good shell in which to invest, it is not a savings vehicle like a bond. With a Roth IRA you contribute taxable earnings that you then invest and will grow tax free, meaning the total in that account when you start drawing on it at age 59.5 will not be taxable. This is in comparison to a traditional IRA that contributes before tax income that is taxable as it is drawn. IMO, a Roth IRA is the way to go. We are starting to see Roth 401ks as well, which are nice since I would rather contribute after tax than before.</p>
<p>What to invest in once you open the IRA (note you have to earn X amount per year to qualify to contribute to an IRA, not sure of the amount). What you invest in should be compatible with your risk tolerance. I’m young and invest in more volatile stocks, but the reward is generally higher (getting destroyed today however, triple witching this week). Either way, I would suggest you actively manage your investments.</p>