Dmitriy Fomichenko, President, Sense Financial
@dfomichenko
If you have no savings, I would recommend to start as early as possible, even with small contributions at first.
The difference between a traditional IRA and a Roth IRA is the tax treatment. With the traditional IRA, you get tax-deferred benefit, which means the money you contribute to your IRA now will not be taxed. This allows you to invest the full amount and earn more income. Taxes are only taken out when you withdraw from the account.
A Roth IRA, on the other hand, will accept after-tax contributions, meaning you will pay taxes now. However, the money will never be taxed again, neither is the profit your earn from investing the original amount.
The choice between a traditional IRA and Roth IRA can depend on many factors, including your current income tax rates and expected tax rates during retirement.
Remember that either IRA or Roth IRA is only a basket to hold your investment assets, such as stocks, bonds, or mutual funds. So after you select your "basket", you will also need to select your "eggs" to put in it.
It's really not possible for advisors to give a specific recommendation with so little information about you. I would recommend talking to a qualified financial planner about your situation and financial goals.
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