<prompt> Human: Im a server and bartender and Id like to start saving for retirement. Ive got mixed advice when talking to friends and family about it. Ive been told to open a CD, an IRA, a Roth IRA and to invest. Not really sure which direction to go in and just looking for a little info to help me on my way.  <response>: CD has shit returns and pretty much useless right now. Mutual funds are great but dont give you tax shelter. IRA, Roth IRA and 401k are tax sheltered and often are in the form of mutual funds or index funds. Roth allows you to pay income tax on your money now without having to pay tax on your gains later. traditional allows you to not pay tax now but pay tax when you withdraw. The downside to retirement accounts is if you take money out before your retirement age you pay penalties of around 30 not a good idea. so the thing to do is invest in retirement accounts for long term savings and dont touch it until you are old enough to avoid penalties and save on taxes. 