Retirement Planning Company – Libertyville, Illinois
For those in "Generation X" - described as folks born between the mid-1960s and also the early 1980s - retirement planning may sound like something your mother and father or other "old people" would do. But guess what? With lots of "baby boomers" either already in the middle of retirement or observing it on the horizon, "Generation X" is the next generation of folks to reach old age. Sure, it is a ways off, but those in their 30s and 40s ought to begin focusing their investment planning on retirement and making sure they have the kind of retirement they are working 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 will likely be far better in some ways, and worse somewhat. But, the retirement planning for today's labor force needs to 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 4 years more than the average life span in 1980. So investment planning for retirement has to account for a longer time of time now than a generation or two ago.
Social Security and Retirement - Libertyville, Illinois
On the downside, Social Security will probably be a far less trustworthy income source than it is now. And the likelihood is slim-and getting slimmer every year-that retirees 20 and 30 years from now will be able to rely on a work pension and enjoy lifetime benefits from their previous employer. More and more, retired persons will have to rely on their financial savings to pay for the expenses of living and medical health insurance.
With people living longer and needing more money to do so, retirement planning is an essential activity even for those people who are half way to the regular retirement age of 65. It could be a daunting task to plan for a few decades into the future, especially with bills, rents and home loans to pay right now, but procrastinating will not make it any less difficult.
Putting even just a little bit of cash into a savings account which serves as a retirement savings plan can pay off in the future. The interest you receive 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 acquire capital earning a small interest rate until there is enough to invest in a trusted security that will yield you more like a municipal bond.
Another good approach that can surely and steadily build a nest egg is to invest in long-term bonds. After maturation of the bond, you'll get back your initial investment along with all the interest which collected over the lifetime of the bond. That's a tremendous amount of money for a 20- or 30-year bond-money that can provide a nice foundation for retirement. And a municipal or government bond is as safe an investment as you can ever make.
401K and IRA With Retirement - Libertyville, Illinois
However, the best approach when it comes to retirement planning is to put money in a 401K plan at work or in an IRA opened with an investment house. For those for whom a 401K is not a retirement planning option, an IRA is the next best thing. Money placed in this account is tax deferred and may be tax-deductible, depending on how much is invested each year.
For more information, 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 folks in the Libertyville, Illinois area.
