Retirement Planning Services – Elk Grove Village, Illinois
For those in "Generation X" - defined as folks 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 lots of "baby boomers" either already in the middle of retirement or viewing it in the near future, "Generation X" stands out as the next generation of people to reach old age. Sure, it is a ways off, but people in their 30s and 40s should begin focusing their investment planning on retirement and ensuring they've got the kind of retirement they are working so hard to enjoy. Below are great tips on planning for retirement:
Retirement life in the future will be different than the retirement of today. It will be better in some ways, and worse somewhat. But, the retirement planning for today's workforce must be far different than it was in earlier times.
On the bright side, individuals are living longer than ever. As of not too long 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 four years more than the average life span in 1980. Therefore investment planning for retirement has to account for a longer time of time right now than a generation or two in the past.
Social Security and Retiring - Elk Grove Village, Illinois
On the downside, Social Security will likely be a far less reliable source of income than it is now. And also the likelihood is slim-and getting slimmer every 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, retired people will need to depend on their financial savings to cover the expenses of living and health insurance.
With people living longer and needing more money to do so, retirement planning is a vital activity even for those people who are halfway to the common retirement age of 65. It can be a daunting task to plan for a couple of decades into the future, especially with bills, rents and mortgages to pay today, but procrastinating won't make it any less difficult.
Placing even just a small amount of money now into a savings account which serves 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 supply a place where you can accumulate capital earning a little interest rate until there's enough to invest in a trusted security that will yield you more like a municipal bond.
Another good approach that can surely and gradually build a nest egg is to put money into long-term bonds. Upon 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 significant 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 really as safe an investment that you can ever make.
401K and IRA - Elk Grove Village, Illinois
However, the best approach when it comes to retirement planning would be to put cash 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 option, 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 annually.
For more details, please do not hesitate 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 Elk Grove Village, Illinois area.
