Retirement Planning – Fort Sheridan, IL
For those in "Generation X" - described as people born between the mid-1960s and the early 1980s - retirement planning may sound like something your mother and father or other "old people" might do. But guess what? With many "baby boomers" either already in the middle of retirement or looking at it in the near future, "Generation X" stands out as the next generation of individuals to reach old age. Sure, it's still a ways off, but those in their 30s and 40s should start centering their investment planning on retirement and making sure they have the kind of retirement they are working hard to have. Here are some tips on preparing for retirement:
Retirement life in the future will be different than the retirement right now. 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, people 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 over 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 back.
Social Security and Retiring - Fort Sheridan, IL
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 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 workplace. Increasingly more, retired persons will have to rely on their savings to cover the expenses of living and medical health insurance.
With individuals living for a longer time and needing more cash to do so, retirement planning is a vital activity even for those who are halfway to the standard retirement age of 65. It could be a daunting task to plan for a couple of decades into the future, particularly with bills, rents and home loans to pay right now, but procrastinating won't make it any less difficult.
Placing even just a small amount of cash 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 give you a place where you can pile up capital earning a small interest rate until there is enough to invest in a trusted security which will yield you more like a municipal bond.
Another good approach that may certainly and progressively build a nest egg is to invest in 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 life of the bond. This is a significant amount of money for a 20- or 30-year bond-money that may provide a great foundation for retirement. And a municipal or government bond is really as safe an investment that you can ever make.
401K and IRA With Retirement - Fort Sheridan, IL
Nevertheless, 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 in this account is tax deferred and might be tax-deductible, depending on how much is invested annually.
For more details, please don't hesitate 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 Fort Sheridan, IL area.
