Many baby boomers find themselves in need of additional money for retirement. There are a number of reasons why this generation may find themselves coming up short when it comes to retirement savings. People are living longer than their parents did; in addition, it may cost baby boomers more than it cost their parents to maintain a reasonably comfortable standard of living. For baby boomers who started saving for retirement later in life, it is especially important to boost the amount of money that is being saved. Luckily, there are simple ways to make a positive difference.
Consider Freelance Employment
Thanks to on-demand employment companies like GrubHub and Uber, retired individuals can earn money on their own terms. Freelance gigs are perfect for those who are retired and in need of more money; however, even working individuals can benefit from on-demand gigs. You can work as little or as much as you want and design your own schedule. Although these jobs don’t traditionally come with benefits and they may require the independent contractor to pay their own taxes, taking on-demand work can still be worth it in order to stay active and earn some cash.
One of the easiest ways to save more money for retirement is to reduce what you’re spending, and then take that amount and put it into your retirement account. Examine your spending habits in meticulous detail — everything from your rent or mortgage to a convenience store cup of coffee should be accounted for. Once you’ve documented your spending, see where cuts can be made. For example, make your own lunch instead of dining out; forgo that glossy magazine and get your information for free online. Even small cutbacks can result in big savings, which means more retirement money for you.
Take Advantage of Catch-Up Contributions
One of the best reasons to start saving for retirement as early as possible is that retirement accounts put limits on contributions. Therefore, the earlier you start, the more you can save. However, if you’re late when it comes to saving for retirement, don’t despair. Once you turn 50, you’ll be able to contribute beyond the limits in order to “catch up” on your 401(k) and/or IRA.
Use IRAs to Your Advantage
An IRA, or individual retirement account, is a highly recommended retirement savings vehicle. IRAs are recommended for self-employed persons, business owners, and even employed individuals whose employer doesn’t offer retirement benefits or whose benefits are inadequate.
Invest in Gold and Other Precious Metals
Savvy investors know that precious metals like gold, silver, platinum, and palladium hold up during tenuous economic times and deliver global value. For example, gold has historically been shown to hold up in the face of the worst economic times and still gain value over time. Even if the world’s currencies failed, gold would retain its worth. Gold IRAs are a smart way to invest in gold while saving for retirement; in addition, investors can buy bullion, e-Gold, and gold ETFs. Gold is highly liquid, meaning it can be turned into cash quickly. If you don’t already own gold, add some to your portfolio to diversify and strengthen your overall investment profile.
Although the information in this commentary has been obtained from sources believed to be reliable, American Bullion does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice. American Bullion will not be liable for any errors or omissions in this information nor for the availability of this information. All content provided on this blog is for informational purposes only and should not be used to make buy or sell decisions for any type of precious metals.