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Insight into financial independence
Because women typically have longer life expectancies than men, they will
require additional funds for those extra years. And since women are still
the primary caretakers in our society, many take several years off from
their careers to raise a family -- which substantially reduces their retirement
savings. At Woman's Life we recommend women start saving more money,
earlier in life. But don't worry if you didn't have that opportunity;
it's never too late to start.
Many financial experts say that for an individual to
enjoy a comfortable retirement, an annual retirement income of 60 to 80
percent of his or her final working year's salary will be needed. That's
a lot of income to accumulate in a retirement plan. It's never too late
to begin saving. Start by contributing what you can afford to your employer's
401(k) or similar retirement plan. If you're self-employed, you can set
up a Keogh plan. Depending on your income, you may also want to consider
an individual retirement annuity (IRA) or Roth IRA.
The Roth IRA may allow your earnings to grow tax-free.
Each of the other plans allows your earnings to grow tax-deferred. That
means you won't have to pay taxes on the earnings until you retire, when
you'll most likely be in a lower tax bracket. Because tax-deferred and
tax-free savings grow much quicker than taxed investment savings, these
plans offer a huge advantage in building your retirement savings -- especially
if you start now.
Building and using annuities
The principle behind any annuity is simple: Invest money now and you'll
have a steady paycheck for the future. With that principle in mind, it's
easy to see why an annuity is a great way to help you plan your retirement
income. There are a variety of annuity options and one is right for both
your present and your future.
By starting as early as you can on your financial planning,
you can rest assured that your future will be secure.
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