Retirement Planning Services – Elmwood Park
For those in "Generation X" - described as people born between the mid-1960s and the early 1980s - retirement planning seems like something your parents or other "old people" would do. But guess what? With a lot of "baby boomers" either already in the midst of retirement or viewing it on the horizon, "Generation X" will be the next generation of individuals to reach old age. Sure, it is a ways off, but those in their 30s and 40s have to start centering their investment planning on retirement and making sure they've got the type of retirement they are working so hard to enjoy. Below are great tips on preparing for retirement:
Retirement life in the future will be different than the retirement right now. It will likely be much 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, individuals 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. Therefore investment planning for retirement has to account for an extended period of time now than a generation or two in the past.
Social Security and Retirement - Elmwood Park
On the down side, Social Security will likely be a far less reliable income source than it is now. And the likelihood is slim-and getting slimmer each 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 employer. Increasingly more, retired persons will have to depend on their savings to pay for the costs of living and health insurance.
With individuals 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 standard retirement age of sixty-five. It may be an intimidating task to plan for a few decades into the future, especially with bills, housing costs and mortgages to pay today, but procrastinating won't make it any less difficult.
Putting even just a small amount of money now into a savings account that functions 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 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 approach which could certainly and gradually build a nest egg is to invest in long-term bonds. On maturation of the bond, you'll get back your initial investment along with 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 which could provide a nice foundation for retirement. And a municipal or government bond is really as safe an investment as you can ever make.
401K and IRA - Elmwood Park
Nevertheless, the best approach when it comes to retirement planning would be to put funds 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 may 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 will be happy to help you! We provide 401K and IRA rollover and review services for folks in the Elmwood Park area.
