Retirement Planning Company – Downers Grove, Illinois
For anyone in "Generation X" - described as people born between the mid-1960s and the early 1980s - retirement planning may sound like something your parents or other "old people" might do. But guess 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 old age. Sure, it is still a ways off, but people in their 30s and 40s need to begin focusing their investment planning on retirement and making certain they've got the sort of retirement they are working so hard to enjoy. Here are some tips on planning for retirement:
Retirement life in the foreseeable future will be different than the retirement of today. 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, people 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 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 in the past.
Social Security and Retirement - Downers Grove, Illinois
On the downside, Social Security will likely be a far less reliable source of income than it is now. And the likelihood is 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 cover the costs of living and health insurance.
With individuals living longer and needing more cash to do so, retirement planning is a vital activity even for those who are half way to the standard retirement age of 65. It could be a daunting 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 easier.
Putting even just a small amount of money now into a savings account which works as a retirement savings plan can pay off in the future. The interest you get on money in a savings account will allow your preliminary investments to grow to something sustainable. A savings account will offer a place where you can acquire capital earning a small interest rate until there is enough to invest in a trusted security that will yield you more like a municipal bond.
Another good strategy that can certainly and progressively build a nest egg is to put money into long-term bonds. On maturation of the bond, you'll get back your initial investment as well as all the interest which collected over the lifetime of the bond. That's a tremendous amount of money for a 20- or 30-year bond-money that can provide a nice foundation for retirement. And a municipal or government bond is as safe an investment as you can ever make.
401K and IRA With Retirement - Downers Grove, Illinois
Nonetheless, the best approach when it comes to retirement planning is to put cash in a 401K plan at your workplace or in an IRA opened with an investment house. For the 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 info, please feel free to contact GC Financial Advisors Ltd. at any time and we'll be happy to help you! We offer 401K and IRA rollover and review services for individuals in the Downers Grove, Illinois area.
