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On average, a female retiring at age 65 can expect to live another 20 years, 2 years longer than a male retiring at the same age.†† Why is this problematic? Since women tend to live more years in retirement, there is a greater chance of exhausting savings. Another challenge is that women tend to invest more conservatively then men. Typically, more conservative investments provide lower risk, but they can also provide less return. This tradeoff could lead to having less money in retirement.
Certainly for some, conservative investing is appropriate, but it’s disadvantageous for anyone to adopt this or any other strategy if uninformed of alternatives. So learn about different investment options, such as stocks, bonds, mutual funds, ETFs, and CDs to determine which is right for you. A good rule of thumb is to reduce exposure to risk by combining a variety of investments. At E*TRADE, we offer online tools and education for self-directed investors. For those looking for one-on-one guidance, E*TRADE Financial Consultants, located in 30 branches, can help you plan for retirement in-person or by phone.