Retirement Doesn't Have to Mean a Loss in Income

by Kevin Smith Author

If you’re like many people, you are eagerly counting down the days until retirement. Our golden years should be filled with love, family, and most importantly, security. You probably already know the importance of saving and investing in preparation for retirement, but did you know that it is equally as important to continue investing while in retirement? Many people plan on living off social security or pension plans while in retirement, but is that enough?

Why Is Investing during Retirement Important?

If you plan to retire within the next 20 years, it is possible that social security will not be available. Although this is a topic for debate, there are estimates that claim social security will not be able to pay full benefits after the year 2033. This means that those who retire after that point should expect and plan on supplementing federal aid with personal reserves. As a population, our life expectancy is also increasing; many retirees can plan to live 15-20 years or more beyond retirement. These are just a few of the reasons why it is important to have an investing after retirement strategy in Jefferson, NC.

Besides being vital, investing is also fun. Retirees tend to acquire new hobbies to fill time that was previously occupied by work. Your daytime hobby can include earning money. Day trading, for example, can be the ideal retirement activity because it is only as challenging as you want it to be and you can earn minor gains or a full-time salary. You can then use that income to relocate to another state or another country, invest in startup companies or charities that you are passionate about, travel the world, learn new skills, and spoil those grandchildren.

How Can Extra Income Improve Your Health?

Having financial security can provide a sense of well-being. We’ve all experienced trying and stressful times in our lives as a result of worrying about bills and surprise expenses, however, if you have a stable savings account or investment account, some of that stress is alleviated. As we age, it is also likely that trips to doctor’s offices become more frequent. Increased healthcare costs for retirees is another reason why investing after retirement is both beneficial and necessary. You can use the stock market as a way to compound your emergency funds in case expensive medical bills arise.

What about Taxes?

Taxes are one of two certainties in life. In retirement, you are no longer responsible for payroll taxes, but you will need to pay taxes for social security benefits and IRA withdrawals. For some retirees, tax season can be especially overwhelming without a steady source of income. Having a sound investing after retirement strategy in Jefferson, NC, can mean that you’re able to pay your taxes with ease and without tapping into other resources like savings. If investments aren’t your forte, consider contacting your local wealth management company for guidance and assistance.