Hi, I am a complete investment novice and I was simply wondering which IRA, ROTH IRA or 401K would be most beneficial for me...

Take advantage of the ROTH IRA while that option still exists. The money you contribute to a ROTH IRA is not tax exempt but when you reach retirement age and begin your withdrawals, you will not have to pay taxes on the amount of your original contributions OR the interest and capital gains you realized in that account over the years. There is a limit on the maximum amount you can contribute to an IRA and that amount could change based on the composition of Congress over the next few years but ROTH is the way to go because you have more control and better long-term tax advantages.

I suggest you open an account with Sharebuilder or some other online investment firm that offers ROTH IRAs. If you have more to invest than the maximum permissable amount, park that money in an interest bearing money market account with the same investment firm and let your cash build up until you have graduated and established yourself in a secure job. That way you have a good start on your retirement and also a cash reserve available for either retirement or emergencies as you deem appropriate.

Remember, money doesn't have to be sitting in an IRA account of some type to be earmarked for retirement. People used to save up for their retirements with simple savings accounts. And it worked. The benefit of the online investment IRAs is that you can select from a variety of investments to diversify your holdings. You manage the investments instead of somebody else managing your investments.

Being that you are as young as you are. 22 - WOW! And you're thinking about retirement. That's great! There are several advantages to using all 3 in your lifetime.

First advice - KEEP That Mindset all of your life and never let anyone or anything destroy it. If you work at having good health; you will be a very wealthy person when you reach 60 years of age; just from your retirement accounts.

Second - Learn everything you can about the 401k with Roth option, Self-Directed IRA and the Self-Directed Roth IRA. You can and should use all 3 in your lifetime.

Opening a Traditional IRA or Self-Directed IRA will get you started and will serve as your foundation for the others to generate the most profitable position as you progress.

Soon you will be employed and your employer will likely have a retirement plan. If the plan does not include the Roth as an option, ask your employer to add the option to the plan. Set a percentage of your income to participate. Invest in the Roth option, preferably - because it will be TAX FREE for life. Set goals to transfer portions of the proceeds into your own IRA to have control of what you invest in.

Your personal IRA is the vehicle you want to concentrate on building your retirement.

Progressively learn everything you can about investing safely. There are several investment vehicles that can produce double digit returns without market risk and a few with low market risk. Tradition investing will eat away at your earnings and many times you will not be made aware of it openly by the brokers and firms that collect fees. Learn about the fees of anything you invest in and calculate the fees against your earning potential. Sometimes, fees are as bad as taxes, at eating away your growth.

If married, be sure to get permanent life insurance. A good performing Equity Indexed Universal Life Policy is extremely cheap before age 30. There are many things you can do within this policy. Create an emergency fund, save for children's college (will not affect financial aid), finance the purchase of your own vehicle (never purchase another vehicle again through conventional loans) and pay the interest to yourself, supplement your retirement, plus initiate and fund retirement for your children. There are so many things you can do. You'll need to find an agent or advisor who knows how to do all of these strategies. Term insurance is great, if thats all a person can afford. However, recent history has proven it to be a mistake for many middle age and older individuals who purchased term by well meaning advisors and it turned out bad. Life didn't go as projected and when their 20 year and 30 year term was up; the cost was more than they could afford and their health prevented them from obtaining permanent coverage. To top it off, someone in their family is now fighting a life threatening illness and it's destroying the family's economic life. Many have lost everything choosing term. Seems like a minor decision. Believe me I've lived long enough to see this tragedy happen to families. Include Permanent Life Insurance in your plans.

You'll do fine, if you follow the advice given by the previous contributor, combine it with what I'm giving you and then top it off with what you learn over the next 5 years and beyond. The sky will be your limit.

Go for it. I hope you the best. You're are one of the few young people who is thinking straight. Most people are thinking about right now and suddenly they are 55 and wonder what happened to the time. Keep your mindset and this will not happen to you.

Thanks for giving me opportunity to share.