What are the best investment plans ( Roth,401 k, bonds,) in order?

I currently have an IRA Roth ( which I hear is the best of all plans ) , IRA savings account ( 5% APR ) and a little bit in my 401k. What are the rankings, best to worst.

There is some debate as to the correct answer. In my opinion a Roth IRA is the best vehicles for retirement savings because the amounts earned within the account are untaxed. A traditional IRA is completely taxed at an unpreferential rate, but the money deposited into it is tax deferred. That is where the area of debate lies. Post tax deposits but untaxed earnings vs pre tax deposits but fully taxed withdrawals. Same with a 401k.

Historically, sound equity investments have over a long period of time beaten savings accounts and debt investments by about 3 to 7%. Therefore I would have to rank your IRA savings account at the bottom. Do you get company match on your 401k? If so you should certainly put enought into the 401k to get the match. The main problem with the 401k is the taxablity and the somewhat limited number of investment options. I would rank it ahead of the savings account though.

There is no single straight answer to your question, it depends!

If your employer matches your 401(k) contributions, foremost you should be contributing to that up to the percentage that is matched. That's FREE money!

If you can afford to further fund your own IRA, you can take a tax deduction for your deferred contributions up to the limit, so that's the next most sensible thing to do...

And if you STILL have spare after-tax dollars, put them in a Roth if you haven't met your limit yet.

If you feel that you'll be in a higher tax bracket when you retire, then the Roth IRA is best. If you feel that you'll be in a lower tax bracket when you retire then the Traditional IRA and 401(k) plans are best. 401(k)'s with a match beat out both the Roth and Traditional IRA. Regular taxable accounts follow the Roth and Traditional IRA, and a non-deductible IRA or 401(a) account is worst.

If you're not sure which is best, contribute to all three. Each has its advantages, and disadvantages.

investment in the shares which is going down and sell it wen it is increasing