Retirement Planning – Blue Island, Illinois
For the people in "Generation X" - described as individuals born between the mid-1960s and also the early 1980s - retirement planning seems like something your mother and father or other "old people" might do. But you know what? With many "baby boomers" either already in the midst of retirement or observing it in the near future, "Generation X" is definitely the next generation of folks to reach retirement. Sure, it is a ways off, but people in their 30s and 40s should begin focusing their investment planning on retirement and ensuring they have the type of retirement they are working so hard to enjoy. Below are great tips on preparing for retirement:
Retirement life in the future will be different than the retirement in the present day. It will be much better in some ways, and worse somewhat. But, the retirement planning for today's labor force needs to be far different than it was in the past.
On the bright side, individuals are living longer than ever. As of a short while ago, the average life span of an American was 77.9 years, exactly 2.5 years more than the average life span in 1990 and more than 4 years more than the average life span in 1980. So investment planning for retirement has to account for an extended period of time right now than a generation or two ago.
Social Security and Retiring - Blue Island, Illinois
On the downside, Social Security is going to be a far less dependable source of income compared to now. And also the likelihood is slim-and getting slimmer each year-that retirees 20 and 30 years from right now will be able to rely on a work pension and enjoy lifetime benefits from their previous employer. Increasingly more, retirees will have to rely on their savings to pay for the expenses of just living and health insurance.
With folks living for a longer time and needing more cash to do so, retirement planning is an essential activity even for those people who are half way to the regular retirement age of sixty-five. It can be a daunting task to plan for a couple of decades into the future, particularly with bills, housing costs and home loans to pay right now, but procrastinating will not make it any less difficult.
Putting even just a little bit of cash into a savings account which functions as a retirement savings plan can pay off later. The interest you receive on money in a savings account will allow your initial investments to grow to something sustainable. A savings account will supply a place where you can acquire capital earning a little interest rate until there's enough to invest in a trusted security which will yield you more like a municipal bond.
Another good approach that could certainly and steadily build a nest egg is to invest in long-term bonds. After maturation of the bond, you will get back your initial investment and also all the interest which collected over the lifetime of the bond. That's a considerable amount of money for a 20- or 30-year bond-money that could provide a great foundation for retirement. And a municipal or government bond is as safe an investment that you can ever make.
401K and IRA With Retirement - Blue Island, Illinois
Nevertheless, the best approach when it comes to retirement planning is to put money in a 401K plan at work or in an IRA opened with an investment house. For people for whom a 401K is not a retirement planning option, an IRA is the next best thing. Money put in this account is tax deferred and might be tax-deductible, depending on how much is invested annually.
For more details, please do not hesitate to contact GC Financial Advisors Ltd. at any time and we will be glad to help you! We provide 401K and IRA rollover and review services for folks in the Blue Island, Illinois area.
