Retirement Planning Services – Country Club Hills, Illinois

For the people in "Generation X" - defined as individuals born between the mid-1960s and the early 1980s - retirement planning sounds like something your mother and father or other "old people" might do. But you know what? With a lot of "baby boomers" either already in the middle of retirement or observing it on the horizon, "Generation X" is definitely the next generation of folks to reach old age. Sure, it is still a ways off, but those in their 30s and 40s should begin focusing their investment planning on retirement and making certain they have the type of retirement they are working hard to have. Below are great tips on preparing for retirement:

Retirement life in the foreseeable future will be different than the retirement right now. It will likely be better in some ways, and worse in some ways. However, the retirement planning for today's workforce must be far different than it was in the past.

On the bright side, folks are living longer than ever. As of a few years ago, the average life span of an American was 77.9 years, exactly 2.5 years over 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 time of time now than a generation or two back.

Social Security and Retirement - Country Club Hills, Illinois

On the downside, Social Security will probably be a far less trustworthy 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. More and more, retired persons will need to depend on their savings to cover the expenses of just living and health insurance.

With people living for a longer time and needing more money to do so, retirement planning is an essential activity even for those people who are halfway to the common retirement age of sixty-five. It could be a daunting task to plan for a few decades into the future, particularly with bills, rents and home loans to pay right now, but procrastinating will not make it any easier.

Placing even just a small amount of money now into a savings account that works as a retirement savings plan can pay off later on. The interest you get on money in a savings account will allow your initial investments to grow to something sustainable. A savings account will give you a place where you can pile up capital earning a small interest rate until there is enough to invest in a reliable security that will yield you more like a municipal bond.

Another solid approach that can certainly and steadily build a nest egg is to put money into long-term bonds. Upon maturation of the bond, you will get back your initial investment and also all the interest that collected over the lifetime of the bond. This is a significant amount of money for a 20- or 30-year bond-money that can provide a good foundation for retirement. And a municipal or government bond is really as safe an investment that you can ever make.

401K and IRA - Country Club Hills, Illinois

Nonetheless, the best approach when it comes to retirement planning is to put funds in a 401K plan at your workplace or in an IRA opened with an investment house. For people for whom a 401K isn't a retirement planning choice, an IRA is the next best thing. Money placed in this account is tax deferred and might be tax-deductible, depending on how much is invested every year.

For more details, please feel free to contact GC Financial Advisors Ltd. at any time and we will be glad to help you! We offer 401K and IRA rollover and review services for individuals in the Country Club Hills, Illinois area.