Retirement Planning – Kenilworth, Illinois
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 a lot of "baby boomers" either already in the middle of retirement or looking at it on the horizon, "Generation X" is the next generation of folks to reach retirement. Sure, it is a ways off, but people in their 30s and 40s ought to start centering their investment planning on retirement and ensuring they have the type 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 right now. It'll be much better in some ways, and worse somewhat. However, the retirement planning for today's workforce needs to be far different than it was in yesteryear.
On the bright side, folks are living longer than ever. As of a short while 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 right now than a generation or two in the past.
Social Security and Retirement - Kenilworth, Illinois
On the downside, Social Security will probably be a far less reliable income source than it is 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 have to depend on their savings to pay for the expenses of just living and medical health insurance.
With folks living longer and needing more money to do so, retirement planning is a vital activity even for those people who are halfway to the regular retirement age of 65. It could be an intimidating task to plan for a couple of decades into the future, especially with bills, housing costs and home loans to pay today, but procrastinating won't make it any less complicated.
Placing even just a small amount of money now 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 offer a place where you can acquire capital earning a small 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 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 as well as all the interest which collected over the life of the bond. That's a considerable amount of money for a 20- or 30-year bond-money that 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 - Kenilworth, Illinois
However, the best approach when it comes to retirement planning would be to put cash in a 401K plan at your workplace or in an IRA opened with an investment house. For the people for whom a 401K isn't a retirement planning option, an IRA is the next best thing. Money put into this account is tax deferred and might be tax-deductible, depending on how much is invested each 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 Kenilworth, Illinois area.
