People are living much longer these days and the problem herein lies.
The thinking of yesteryear about retirement just doesn’t work for today’s retiree. The company-provided pension is becoming a thing of the past. Companies cannot afford these luxuries. Today the complex web of retirement income sources are: 401K, IRAs, Social Security, insurance policies and personal savings.
Retirees have to consider their objectives, whether they are planning on working part-time or seeking long-term growth, or do they need a combination of both. Some of the ways to hedge these difficulties would be to contribute the maximum amount to your employer-sponsored plan, invest in an IRA that offers a range of investments, reevaluate your insurance needs and most certainly talk to a professional.
Of course, these are big decisions, and have to be addressed before the time of retirement creeps up on us.
The following are some options for planning for retirement: savings accounts, certificates of deposit (CD’s), bonds, stocks, and mutual funds.
Before you rush to your broker and start buying, you have to make some decisions. Are you looking for investments that will pay you income on an ongoing basis or do you want your investments to grow in value so you can receive a large payout when you are ready? Some investments are more volatile in nature and have more risk factors.
Women in the workplace have different problems. They put the same amount into retirement, about 85% of their salary however, women are making lower salaries than men. Therefore, a woman will need to save 2% more of her pay per year than the average man.
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