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Managing Your Income: How to Continue Saving During Retirement

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You may be familiar with the different investment options for those who are looking toward their retirement. Our system has several options in place like 401ks and IRAs. These have long been sound investment strategies that have allowed people, even after retirement, to live comfortably without fear of destitution. There are tons of resources out there, like retirement calculator, that help individual plan for their financial security in their later years, but just because you retire doesn’t mean you should stop investing and saving.

Up to a certain point, most of the saving that’s been done is all towards planning for retirement in the years leading up to it. This is a great start given that, if you’ve managed to save a substantial amount, you’re well ahead of the curve. Unfortunately, most people even if they save money, are likely to run out of money at some point during their retirement, according to an article on USA Today.com. This is mainly due to longer life spans and the rising cost of living. Money that you put aside ten years ago that might have been adequate then, could possibly prove insufficient today. This is just one of the unfortunate realities of retirement savings.

To avoid running out of money and to keep up a standard of living, it’s best for people to look toward investing long into their golden years. This is a difficult proposition right now at a time when interest rates are desperately low and hovering somewhere around zero percent. This promises a next to zero return on investments which has forced many people to look towards a shaky stock market to shore up their holdings.

If you have any income at all, besides your retirement fund, you should look into reinvesting this money into different assets. Mutual funds are one example of a low-risk way to provide a consistent revenue stream. These are lower return investments, but they’re also safer. This is one option that you can take besides heading back out into the workforce. This is a decision that millions of retirees have had to face due to dwindling or inadequate savings.

In order to control your assets during retirement you have to make your money work for you. This can only be done through good financial planning and informed investing. The overall idea is to put your money towards investments with low risk and a promise of a return on that investment. You also want to have a certain level of liquidity with your assets so you’ll be able to access your finds without being hit with hefty withdrawal fees. It’s the same as with any aspect of financial planning, but during your retirement years, you’ll have to plan extra carefully. Consider these issues when mapping out your long-term strategy.

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AUTHOR Derek

My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.

5 Comments

  1. My mom will be facing a similar situation when my father passes away in that his pension will no longer be added into the income. She is concerned that her budget might fall short. Our plan is to have her purchase an income producing property. She should be able to get about a 10% return on cash rather than 1% which would replace that income. I will manage it for her.

  2. It’s interesting that most people plan up until retirement but do not put much thought into cash management once they are retired.

    • Very true. It’s a whole different ball game too. Without a plan, a retiree could get into trouble pretty quickly.

    • Yes, I suppose they are, but you can always do something else with your money. For example, you blog and most likely earn a bit of income. Imagine if you continued to work at it with your low-cost startup. Your return would be much more than the lowzy interest rate right now!


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