Planning for retirement inevitably requires early savings and working toward building up the funds for a comfortable life during the golden years. Retirement plans aren't what they were 50 years ago as human lifespan has increased over the years and more men and women are living longer lifespans and have to plan ahead for life after retirement. Since women have a longer life expectancy and face a wide range of challenges related to retirement, it can be helpful to take measures to bring in extra funds after retiring.
Challenges Women Face in Retirement
According to an article in USNews.com, women face several challenges that often lead to poverty and difficulty during the later years of life. The article states that women are often widowed and make less money over a lifetime, which leads to smaller retirement funds to get by.
Due to the challenges associated with a longer lifespan and lower average earnings over a lifetime, women often struggle to manage in their senior years. Women who are widowed face even tougher problems because they do not have the benefit of two retirement funds, which means costs of living and medical bills can be harder to manage.
Since senior women potentially face a wide range of challenges, they can find ways to increase funds and bring in some extra cash to live comfortably in retirement. Fortunately, with a few smart choices it is possible for women to augment their savings.
Buying Gold and Precious Metals
Retirement income often comes from investments, retirement funds and savings. Women who are looking for ways to augment their funds for a comfortable retirement can consider purchasing gold in some form.
Ron DeLegge on ETFGuide.com suggests investing in gold as a way to increase income by obtaining gains on the metal. A simple way to invest in gold is buying coins. Since the US Money Reserve sells gold, silver and other coins to the public, it is possible to buy a few ounces and store it for some financial security.
Buying precious metals is a great way to put money into a relatively safe material. Gold, silver and other precious metals tend to increase in value over time and women can sell the coins or other gold materials when more cash is necessary to get through tough times in retirement.
Investing in Stock
Another idea for retirement investments is to add stocks to an investment portfolio. According to Forbes, it is no longer enough to put the entire portfolio in bonds or cash investments. The income earned from low-risk investments is not enough to combat inflation as women live longer.
Investing in stock can be risky, but women can set aside 20 percent of a portfolio to make a reasonable profit. Before taking any funds and putting it into stock, women should look up details about the company and the historical information relating to trends and changes and do thourough research. Safe stock investments are stable companies that sell products with obvious profits and losses. It is best to opt for funds as a major part of the stock investment, since it has more diversity.
Consider Part-Time Work
Investment is not the only way to make money in retirement. Women can capitalize on hobbies, such as working part-time as a florist or opening a home as a bed-and-breakfast. Using a hobby, skill or personal interest as a way to bring in a little extra cash, women can enjoy activities during retirement while having a secondary source of income. This can make living expenses more comfortable and help put aside some funds for the future.
Retirement is not a time to be stressed about expenses. As women live longer and face challenges like widowhood or a small retirement account, it is possible to find ways to make these years more enjoyable.
James burrow has had a budget since he was in elementary school. He loves teaching others how to be wise with their money.
