6 ways to save money for retirement.

If you are young now, there’s no doubt you may be thinking that retirement is far off, however, it is vital to consider the ways you could be saving for it now in order that you’re not “surprised” by it later. Listen, life happens and life goes real fast. Don’t wait and start planning for the future. You must do it now.

If you are lost on how to go about doing this, here are 6 ways to save money for retirement to consider.

Do low-risk investing

Consider taking out a low-risk investment that will allow you to recoup some of the money you put into it should your investment fall through. While this usually will not make you large amounts of money quickly, it will allow for some cushioning.

One of the favorites of doing low-risk investing is reselling. Purchasing something that you know is a good deal, either new or used, and flipping it for a profit on Facebook groups, Craigslist, or eBay.

Do the math

Consider what you will have in Social Security by retirement age. Use this to help you calculate what you will need to save, however, don’t rely on it as your only source as it is often not even close to what most people need to live on.

Open a CD

CDs (certificates of deposit) allow you to keep money in the bank that you can’t touch for a period of time, and generally can offer a small amount of interest in return. While CDs won’t leave you rich when retirement comes, they will help you keep your hands off it until the time is up, and the money they add to your account in interest does add up over time.

Don’t add debt

One way to set up problems in your future is to acquire too much debt that it not only leaves you with bills when you want to retire, but also makes it hard for you to have any extra money to set aside for retirement as well. When taking out a loan for major purchases, such as a car or house, consider if what you are buying is an investment in your future that will help you as you age or hurt you.

Give the IRS your interest

While this is the last resort, in my opinion, if you have a hard time keeping your hands off the money, ask the IRS to take more from you in taxes than you owe. Did you know that you can actually “loan” the IRS money out of your paycheck and get it back at the end of the year as a return? While the IRS does not typically give you back interest, it is a great way to add to your retirement (by taking this “extra money” and investing it at the end of the year) in little controlled bits.

Open a 2 signature account

Likewise, if you have trouble keeping your hands off the money, open a 2 signature account at a credit union. As the name suggests, you need 2 people to sign to withdraw the money and in the case of a death, you’ll just bring in the death certificate and the account will transfer to a 1 signature account, no problem.