The Easiest Way to Save For Retirement
Saving for retirement can be daunting. If you’re looking for the easiest way to save money for retirement without any real effort, I would use Acorns. It’s app based, so you can probably set it up through your phone too. I use it and it’s easy.
Acorns allows you to save money by rounding up your account spending, much like a round-up savings account. So, if you use a debit card and you spend $1.25, Acorns will round up to an amount you desire (I choose a dollar round up) and take the extra amount for investing. So, in the case above, $.75 would be set aside for withdrawal from Acorns into a retirement account ($1.25 rounded up to $2 = .75). You can also determine the minimum amount to reach before withdrawal. So, I set mine to $5. At $5 per minimum, I’ll have a couple of withdrawals a month. If you really want it to add up, you have to also invest periodically with the automatic withdrawals.
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It’s really easy to use. All you have to do is set up all of your credit or debit cards and the round-up amounts will be withdrawn periodically. The amounts are so small, it shouldn’t effect your budget too much. And, if you’re a college student, it’s free for 4 years. So, why not start investing on you’re parents money… if they’re paying.
Keep in mind, they will charge you $1 per month for maintenance. This can be considered high for the amount invested, but for me, it’s worth it. I just let this account slowly ride on it’s own. So, by far this is the easiest way to save money for retirement.