Retirement Planning Company – Des Plaines, IL
For those in "Generation X" - defined as individuals born between the mid-1960s and also the early 1980s - retirement planning seems like something your parents or other "old people" might do. But guess what? With a lot of "baby boomers" either already in the middle of retirement or looking at it in the near future, "Generation X" will be the next generation of folks to reach retirement. Sure, it's still a ways off, but those in their 30s and 40s have to start focusing their investment planning on retirement and making sure they've got the type of retirement they are working hard to have. Here are some tips on preparing for retirement:
Retirement life in the foreseeable future will be different than the retirement in the present day. It will be much better in some ways, and worse somewhat. However, the retirement planning for today's labor force needs to be far different than it was in earlier times.
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 greater than the average life span in 1990 and more than four 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 back.
Social Security and Retiring - Des Plaines, IL
On the downside, Social Security will likely be a far less dependable source of income compared to 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, retirees will need to depend on their savings to pay for the expenses of living and medical health insurance.
With folks living longer and needing additional money to do so, retirement planning is an essential activity even for those people who are half way to the common retirement age of sixty-five. It may be an intimidating task to plan for a few decades into the future, especially with bills, rents and home loans to pay today, but procrastinating won't make it any less difficult.
Putting even just a little bit of money now into a savings account which works as a retirement savings plan can pay off later. The interest you receive on money in a savings account will allow your preliminary investments to grow to something sustainable. A savings account will give you a place where you can pile up capital earning a little interest rate until there's enough to invest in a reliable security that will yield you more like a municipal bond.
Another solid strategy that could certainly and steadily build a nest egg is to invest in long-term bonds. Upon maturation of the bond, you'll get back your initial investment along with all the interest which collected over the lifetime of the bond. This is a significant 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 really as safe an investment as you can ever make.
401K and IRA With Retirement - Des Plaines, IL
However, the best approach when it comes to retirement planning is to put money in a 401K plan at your workplace or in an IRA opened with an investment house. For those for whom a 401K is not a retirement planning choice, an IRA is the next best thing. Money put into this account is tax deferred and might be tax-deductible, depending on how much is invested every year.
For more details, please don't hesitate to contact GC Financial Advisors Ltd. at any time and we'll be happy to help you! We provide 401K and IRA rollover and review services for individuals in the Des Plaines, IL area.
