Retirement Planning – Buffalo Grove, IL
For those in "Generation X" - described as individuals born between the mid-1960s and also the early 1980s - retirement planning sounds like something your mother and father or other "old people" might do. But you know what? With lots of "baby boomers" either already in the midst of retirement or looking at it in the near future, "Generation X" will be the next generation of people to reach retirement. Sure, it's still a ways off, but those in their 30s and 40s will need to begin centering their investment planning on retirement and making sure they've got the type of retirement they are working so hard to have. Below are great tips on planning for retirement:
Retirement life in the future will be different than the retirement right now. It'll be far better in some ways, and worse in some ways. But, the retirement planning for today's workforce must be far different than it was in days gone by.
On the bright side, people 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 a longer period of time now than a generation or two ago.
Social Security and Retiring - Buffalo Grove, IL
On the down side, Social Security will probably be a far less reliable source of income than it is now. And the odds are slim-and getting slimmer every year-that retirees 20 and 30 years from now will be able to rely on a work pension and enjoy lifetime benefits from their former workplace. Increasingly more, retired people will have to rely on their savings to pay for the costs of just living and health insurance.
With folks living longer and needing more cash to do so, retirement planning is an essential activity even for those people who are halfway to the standard retirement age of 65. It can be an intimidating task to plan for a couple of decades into the future, especially with bills, rents and home loans to pay today, but procrastinating will not make it any easier.
Placing even just a little bit of money now into a savings account which serves as a retirement savings plan can pay off in the future. The interest you receive on money in a savings account will allow your preliminary investments to grow to something sustainable. A savings account will supply a place where you can accumulate capital earning a little interest rate until there is enough to invest in a trusted security which will yield you more like a municipal bond.
Another solid strategy which could certainly and progressively build a nest egg is to put money into long-term bonds. After maturation of the bond, you will get back your initial investment along with 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 which could provide a good foundation for retirement. And a municipal or government bond is as safe an investment as you can ever make.
401K and IRA - Buffalo Grove, IL
Nevertheless, the best approach when it comes to retirement planning is to put cash in a 401K plan at work or in an IRA opened with an investment house. For those for whom a 401K isn't a retirement planning option, an IRA is the next best thing. Money placed in this account is tax deferred and may be tax-deductible, depending on how much is invested each year.
For more info, please don't 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 Buffalo Grove, IL area.
