So what’s really the best retirement investing plan available to the average person?

Most financial experts consider the Roth IRA to offer the best of all worlds to those investors who can’t or won’t actively participate in the markets. After all, active investing is serious business and should be undertaken with the utmost care. Even some professional investors, however, have Roth IRA retirement plans.

Here are some terrific benefits you should be aware of about this favored investment vehicle. Although the Roth IRA does not afford an immediate tax break for investors it does have a nice benefit when you decide to take money out of this account at the appropriate time.

The benefit is that you won’t pay any tax on your money at that time. Your investment grows tax-deferred. Which means you can amass a great deal of money passively through smart choices in the investments your IRA account is invested in and through the powerful effect of compounding interest.

As you put the maximum allowable contribution into your Roth IRA (and it’s best to make your contributions on a monthly basis to take advantage of the interest earnings over each and every month your money is in the account) and leave it untouched, the money grows consistently barring any major disaster in the financial markets or in your overall investment portfolio.

Growing your Roth IRA account does take a little knowledge of the markets. Because your account will be spread out over several market investments. That’s why it’s a good idea to determine which types of general investments (stock, bonds, funds, real estate, etc.) make sense for you to put your money in.

The flexibility of your investment choices makes the Roth IRA a great retirement plan to take advantage of. By consulting with a knowledgeable financial advisor or accountant, you can pick the best investment and spread your account out to mitigate losses. If you know a lot about stocks then you’ll probably be more interested in investing your Roth IRA account in common stocks you’re familiar with.

But you can also diversity into other investments and take full advantage of the volatility of the markets. When one investment goes down another may go up thereby stabilizing your account and still allowing for growth.

Another great benefit to the Roth IRA is that you can open an account at any age. There are no age restrictions. And, as smart investors know, it’s better to start investing later than never. In order to make sure you get the most recent information about the rules and regulations surrounding Roth IRA and other retirement investing accounts, it’s a good idea to talk to a trained financial professional.

They’ll fill you in on the current laws you need to know and help you determine if the Roth IRA is the right investment for your retirement needs.