How to Increase your Income
Colleen Mulder-Seward, MBA
Retirement Calculator, Inc.
How to Increase your Income Out of Your Savings
Saving for retirement is about far more than just putting money into an account that you treat a little bit like a rainy day fund; when you are saving for your retirement, the reality is that you are not just setting money aside to spend later, your goal should be discovering how to make income out of those savings. In other words, rather than looking at the money that you are putting aside now, you should be thinking about creating the income that you will need to have once you are no longer receiving a steady paycheck from an employer.
At first glance, that may not seem to be a huge difference. You may know that when you are saving it is because there will be a time when you no longer have a regular income; but it is a matter of perspective. When you learn how to make an income out of your savings, when you commit to creating an income, you are going to find that you look at things differently. Rather than just choosing a savings account, you will look into the benefits of an individual retirement account that is designed to be used for a longer term and therefore will often have better interest rates associated with it.
More important than that, when you goal is to discover how to make income out of your savings, you will find that you are a more informed consumer. You will not just look at one or two savings options, instead, you will consider bonds, IRAs, annuity accounts and certificates of deposit; you will know up front that your goal isn't to put your money away, instead you will be working towards using your money to make money. As a result, you are likely to also discover that rather than putting your savings into an account there are benefits to investing - provided you know the right stocks and mutual funds to add to your portfolio.
If you are serious about learning how to make income out of your savings, you'll find that you will benefit tremendously from downloading the retirement calculator on this page. With it, you will be able to compare the income you would make by choosing one type of savings account over another. With it too you will be able to consider stocks and mutual funds, how they have performed in the past and how each is projected to perform in the future.
More importantly, when you download the retirement calculator, your contact information will be forwarded to a financial advisor in your area who will call you and who can answer your questions and teach you even more about how to make income out of your savings. During that call, you will be able to discuss your plans for the future, your savings and investment strategy thus far and what type of income you hope to have available when you retire.
Learning how to make income out of your savings is simple - provided you have all of the information that you need. Using the retirement calculator will help you to learn more on your own; talking with a financial advisor can help you to put your knowledge of how to make income out of your savings to work for you so that you can reach all of your financial goals, whatever they may be.