Retirement Planning – Hometown, IL
For those in "Generation X" - described as people born between the mid-1960s and also the early 1980s - retirement planning seems like something your parents or other "old people" might do. But you know what? With many "baby boomers" either already in the middle of retirement or looking at it on the horizon, "Generation X" will be the next generation of folks to reach old age. Sure, it is still a ways off, but people in their 30s and 40s should start centering their investment planning on retirement and making sure 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 foreseeable future will be different than the retirement of today. It'll be far 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 yesteryear.
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 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 time of time right now than a generation or two in the past.
Social Security and Retiring - Hometown, IL
On the down side, Social Security is going to be a far less reliable income source compared to now. And also the odds are slim-and getting slimmer each 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 persons will need to depend on their savings to cover the costs of living and health insurance.
With folks living longer and needing extra money to do so, retirement planning is an essential activity even for those who are half way to the common retirement age of sixty-five. It may be a daunting task to plan for a few decades into the future, particularly with bills, housing costs and home loans to pay right now, but procrastinating won't make it any easier.
Putting even just a small amount of money now into a savings account that works as a retirement savings plan can pay off later. The interest you get on money in a savings account will allow your initial investments to grow to something sustainable. A savings account will offer 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 strategy that may surely and gradually build a nest egg is to invest in long-term bonds. After maturation of the bond, you will get back your initial investment along with all the interest that collected over the lifetime of the bond. This is a considerable amount of money for a 20- or 30-year bond-money that may 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 With Retirement - Hometown, IL
However, the best approach when it comes to retirement planning would be to put funds in a 401K plan at work 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 each year.
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 Hometown, IL area.
