The old adage, "You're never too young to start saving" could never be more true. But knowing the best way to save can be confusing.

Roth vs. Traditional 401(k)

 

Millennials who are just entering the workforce might be in a low tax bracket now and a high tax bracket later on in their careers. That means in retirement they stand to benefit more from contributing to a Roth 401(k) or Roth IRA than a traditional 401(k) or IRA.

By contrast, those who might be in high tax bracket now and a low tax bracket in retirement stand to benefit more from contributing to a traditional 401(k).

TheStreet's Robert Powell walks you through what you need to know about retirement savings in the video above.

And check out more from TheStreet's new video series 'Ask Bob' below:

Sign up for Retirement Daily and be sure to follow Mr. Retirement on Twitter @RJPIII.

 

More from Video

What You Need to Know About Your 401k in a Volatile Market

What You Need to Know About Your 401k in a Volatile Market

Market Movers: Tech Earnings

Market Movers: Tech Earnings

The 2020 Mustang Shelby GT500 Is the Most Powerful Street-Legal Mustang Ever

The 2020 Mustang Shelby GT500 Is the Most Powerful Street-Legal Mustang Ever

In Case you Missed it: Bank Earnings Powered Stocks, Netflix's Big Report Card

In Case you Missed it: Bank Earnings Powered Stocks, Netflix's Big Report Card

How Automated Investing Is Changing the Investing Landscape

How Automated Investing Is Changing the Investing Landscape