Retirement Planning Services – Justice
For anyone in "Generation X" - described as individuals 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 you know what? With many "baby boomers" either already in the middle of retirement or observing it on the horizon, "Generation X" is definitely the next generation of people to reach old age. Sure, it's still a ways off, but those in their 30s and 40s must begin focusing their investment planning on retirement and making sure they've got the sort of retirement they are working hard to enjoy. Here are some tips on planning for retirement:
Retirement life in the foreseeable future will be different than the retirement of today. It will likely be better in some ways, and worse in some ways. But, the retirement planning for today's workforce needs to 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 greater 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 an extended period of time right now than a generation or two ago.
Social Security and Retirement - Justice
On the down side, Social Security will likely be a far less dependable income source 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 former workplace. Increasingly more, retired people will have to rely on their savings to cover the expenses of living and medical health insurance.
With individuals living longer and needing additional money to do so, retirement planning is an essential activity even for those who are halfway to the regular retirement age of 65. It can be an intimidating task to plan for a couple of decades into the future, especially with bills, rents and mortgages to pay right now, but procrastinating won't make it any less complicated.
Placing even just a small amount of money now into a savings account that functions as a retirement savings plan can pay off in the future. The interest you get on money in a savings account will allow your initial investments to grow to something sustainable. A savings account will supply a place where you can build up capital earning a small interest rate until there's enough to invest in a trusted security that will yield you more like a municipal bond.
Another good strategy which could certainly and gradually build a nest egg is to put money into long-term bonds. After maturation of the bond, you will get back your initial investment along with all the interest that collected over the life of the bond. This is a tremendous amount of money for a 20- or 30-year bond-money which could provide a good 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 - Justice
Nonetheless, the best approach when it comes to retirement planning would be to put money in a 401K plan at your workplace or in an IRA opened with an investment house. For 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 info, please feel free 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 Justice area.
