Retirement Planning Services – Glenview, Illinois
For the people in "Generation X" - described as people born between the mid-1960s and also the early 1980s - retirement planning sounds like something your mother and father or other "old people" would do. But guess what? With many "baby boomers" either already in the middle of retirement or observing it in the near future, "Generation X" is the next generation of men and women to reach old age. Sure, it's still a ways off, but those in their 30s and 40s should begin centering their investment planning on retirement and making sure they have the sort of retirement they are working so hard to have. Here are some tips on preparing for retirement:
Retirement life in the foreseeable future will be different than the retirement of today. It will be better in some ways, and worse in some ways. However, the retirement planning for today's labor force must be far different than it was in the past.
On the bright side, folks 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 four years more than the average life span in 1980. Therefore investment planning for retirement has to account for an extended period of time right now than a generation or two back.
Social Security and Retiring - Glenview, Illinois
On the down side, Social Security will probably be a far less reliable income source compared to now. And also the odds are 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 former workplace. Increasingly more, retired people will have to rely on their financial savings to pay for the costs of just living and health insurance.
With people living longer and needing extra money to do so, retirement planning is a vital activity even for those who are halfway to the standard retirement age of sixty-five. It may 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 will not make it any less difficult.
Placing even just a small amount of cash 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 offer a place where you can pile up capital earning a small interest rate until there's enough to invest in a trusted security which will yield you more like a municipal bond.
Another good approach which could surely and steadily build a nest egg is to put money into long-term bonds. After maturation of the bond, you will get back your initial investment and also all the interest that collected over the lifetime of the bond. That's a tremendous 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 With Retirement - Glenview, Illinois
However, the best approach when it comes to retirement planning would be to put cash in a 401K plan at work or in an IRA opened with an investment house. For those for whom a 401K isn't 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 each year.
For more details, please feel free 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 folks in the Glenview, Illinois area.
