BIRMINGHAM, Ala. (WIAT) — If you’re like most of us, you’re not saving enough for retirement. And with the price of everything going up, it’s tough to put a lot of money away. However, when you when you consider the fact that an average retiring couple will need $240,000 just to cover medical expenses and that social security benefits are the primary source of income for over 60 % of households, the time is now to start investing– especially for women. Financial advisor Donna Cates of Ameriprise Financial Services said women need to save more for retirement then men. “Women live longer than men, we typically aren’t in the workforce as long as men, and when we are working, we don’t earn as much money as men,” said Cates.
For years, Realtor Amy Pruett put off saving for retirement. “My husband had always been interested in investing, but it always scared me , it always seemed risky,” said Pruett.
Now, with the help of Cates, Amy is well on her way to financial freedom in her golden years.
So what is the best way to start saving for your financial future? First, look at your cash flow to see how much money you have coming in and going out. Then consider your financial goals and how long you have to achieve them. Really ponder the best way to invest your money. Cates said many women are tempted to put money aside for their child’s college fund, but that’s not always the best idea.
“A child will have access to money to pay for college, but when you and I get ready to retire, there’s not going to be anybody there to pay us our pay check,” said Cates.
Finally, plan for things that could derail your goals,like an illness or injury.
Even if your full time job is taking care of the kids, Cates said you still need to save for retirement. “Even if you don’t have earned income, your husband can make a spousal IRA contribution on your behalf.” The key, is being prepared.
To learn more about Donna Cates, visit her website, or call her at 205-909-3126.
On Monday March 10th Cates is hosting “Strategies for Social Security” at 9 am at Homewood Public Library. She also is the host of a monthly seminar on what women need to know about divorce. It’s on the second Saturday of every month from 8:15- 12:30 pm.
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