Women must plan extra carefully for retirement - Ahwatukee Foothills News: Money

default avatar
Welcome to the site! Login or Signup below.
|
||
Logout|My Dashboard

Women must plan extra carefully for retirement

Print
Font Size:
Default font size
Larger font size

Related Stories

Posted: Friday, August 17, 2012 4:49 pm

If you’re a woman, you have to be actively involved in your financial preparations for retirement — and that’s true whether you’re single or married. As a woman, you have at least two special considerations associated with your retirement planning:

• You’ve got a longer life expectancy. Women typically outlive men by about seven years, according to the National Center for Health Statistics — and more years of life mean more expenses.

• You may have less money in your retirement plan. Women drop out of the work force for an average of 12 years to care for young children or aging parents, according to the Older Women’s League, a research and advocacy group. This time away from the workforce results in women accumulating much less money in their employer-sponsored retirement plans, such as 401(k)s.

The prospect of a long, underfunded retirement is not a pleasant one. Fortunately, there’s much you can do to avoid this fate. For starters, know what’s going on in your financial situation. If you are married, share the responsibility of making investment decisions. What are your retirement goals? Are the two of you investing enough to eventually achieve these goals? And where is the money going? If you are working with a financial advisor, make sure you ask all the questions you can think of — and whenever you think of new questions, ask them as well.

You’ll also need to know what you can expect to receive if your husband dies before you. As a surviving spouse, you will likely inherit all your husband’s assets, unless he has specifically named other people — such as grown children from an earlier marriage — as beneficiaries. Nonetheless, you can’t just assume that all sources of income that your husband receives will automatically roll over to you. For example, if your husband were to die before you, you wouldn’t get his Social Security payments in addition to your own, although you could choose to collect his payments instead of yours. But if you both earned similar incomes, you might not get much of an increase in Social Security benefits.

In any case, whether you’re married or single, here are some moves that can benefit you:

• “Max out” on your 401(k). If you can afford it, invest the maximum amount into your 401(k) and increase your contributions every time your salary goes up. Your 401(k) provides you with tax-deferred earnings and a variety of investment options.

• Contribute to an IRA. Even if you have a 401(k) or other employer-sponsored retirement plan, you might be eligible to contribute to a traditional or Roth IRA. A traditional IRA offers tax-deferred earnings, while a Roth IRA grows tax free, provided you don’t take withdrawals until you’re at least 59 1/2 and you’ve had your account at least five years. You can fund an IRA with virtually any investment you choose.

Do whatever it takes to help ensure a comfortable retirement — and the sooner you start planning, the better.

• This article was written by Edward Jones for Cyndi Newburn, an Edward Jones financial advisor in Ahwatukee Foothills. Reach her at (480) 460-1149.

More about

More about

More about

  • Discuss

Famous Animal Paintings You Need to Know

The paintings of animals are an integral part of art history. There is even a genre named equine painting, describing portraiture of horses. O…

Published: December 5, 2016 - 7:39 pm @ http://www.widewalls.ch/famous-animal-paintings/

Mother pleads for justice after her son was nearly killed in Phoenix

PHOENIX - Two weeks ago, Betsy Gomez got the call no mother wants to get -- her 19-year-old son Anthony Almanza was at Maricopa County Medical…

Published: December 5, 2016 - 7:40 pm @ http://www.abc15.com/news/region-phoenix-metro/nor…

Why Shinzo Abe Is Really Going to Visit Pearl Harbor

No one is better at burying a story than Japanese officials.Prime Minister Shinzo Abe of Japan (Liberal Democratic Party) soberly remembers th…

Published: December 5, 2016 - 7:41 pm @ http://www.thedailybeast.com/articles/2016/12/05/w…

Newborn Baby Kidnapped from Alabama Hospital After Parents Decline Birth Certificate and SSN

by Health Impact News/MedicalKidnap.com Staff Theirs was a spiritual journey of getting back to nature and rejecting the materialism that they…

Published: December 5, 2016 - 7:10 pm @ http://medicalkidnap.com/2016/11/03/newborn-baby-k…

Phoenix police chief announces plan to shift officers to patrol duty

PHOENIX - In a move to improve first-responder efforts, Phoenix Police Chief Jeri Williams announced Monday that she's reallocating about 169 …

Published: December 5, 2016 - 7:10 pm @ http://www.abc15.com/news/region-phoenix-metro/cen…

The Last First Friday Before the New Year!

Use Current Location miles Unexpected Art Gallery More Info More Info 734 W. Polk St. Phoenix, Arizona 85007 602-638-1313 www.unexpectedartgal…

Published: December 5, 2016 - 6:39 pm @ http://www.phoenixnewtimes.com/slideshow/the-last-…

What Democrats Need: Something Old and Something New

Just a few weeks ago, the Republican Party was bracing for the end of what most observers considered a disastrous election season: Unlikely no…

Published: December 5, 2016 - 6:40 pm @ http://billmoyers.com/story/democrats-need-somethi…

Aaron Chamberlin to Open Tempe Public Market Café in 2017

Amy Silverman A A Aaron Chamberlin of St. Francis and Phoenix Public Market Café is planning to open a third spot in Tempe. He's aiming for a …

Published: December 5, 2016 - 6:37 pm @ http://www.phoenixnewtimes.com/restaurants/aaron-c…

Vandals Shatter Middle Eastern Bakery Windows In Phoenix; Community Rallies

The Middle Eastern Bakery in Phoenix, Arizona has been in business for years. They're a local favorite, winning awards and making friends in t…

Published: December 5, 2016 - 6:02 pm @ http://crooksandliars.com/2016/12/vandals-shatter-…

How A "Typo" Resulted In A $7 Billion Corporate Welfare Program In Texas

by Tyler Durden Dec 5, 2016 6:55 PM Throughout the 90s, Texas was frequently listed as a finalist in Site Selection magazine's annual Governor…

Published: December 5, 2016 - 5:39 pm @ http://www.zerohedge.com/news/2016-12-05/how-t

Facebook

ahwatukee.com on Facebook

Twitter

ahwatukee.com on Twitter

RSS

Subscribe to ahwatukee.com via RSS

RSS Feeds

Spacer4px

Most Popular

Online poll

Loading…