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Here’s How You Can Make More Money In Retirement

Here’s How You Can Make More Money in Retirement

While retirement might seem like an extended period of leisure, for countless seniors, it’s a financially trying time. Not only do many retirees struggle to pay the bills, but more than 25 million seniors are currently living at or below the poverty line. Throw in the fact that a large percentage of soon-to-be retirees are woefully behind on savings, and it’s no wonder 60% of baby boomers are more worried about running out of money in retirement than actually dying.

But one thing many people don’t realize about retirement is that it offers ample opportunities to make money. Whether you’re approaching retirement with a skimpy nest egg or are a current retiree having trouble making ends meet, here are a few options for generating some much-needed income.

An older man, smiling as he sits in an outdoor scene.
IMAGE SOURCE: GETTY IMAGES.

1. Choose investments that pay you more

Seniors are often advised to move away from stocks and to limit themselves to safe investments. But while it’s a smart idea to shift some of your assets into low-risk alternatives, keeping stocks in your portfolio is a good way to bring in additional income. As long as you don’t anticipate the need to liquidate your stock positions within five years, there’s a good chance they’ll grow in value over time, which means you’ll eventually be able to sell them at a gain. But just as importantly, if you buy dividend stocks issued by established companies and keep them in retirement, you’ll get what’s essentially a quarterly paycheck.

2. Open a Roth IRA

While the traditional IRA is an important savings tool in its own right, if your goal is to have access to as much money as possible in retirement, you really can’t beat a Roth IRA. Unlike traditional IRAs, Roth IRA withdrawals are taken tax-free, which means whatever amount you have sitting in your account is yours to use in full.

Furthermore, unlike traditional IRAs, Roth IRAs don’t impose required minimum distributions starting at age 70 1/2. This means that if you can hold off on touching your IRA for a few extra years, you’ll get to grow your savings tax-free for longer.

3. Start a business

Just because you’re retired doesn’t mean you aren’t capable of working and earning extra…

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