Retirement Planning – Lyons, IL
For those in "Generation X" - described as individuals born between the mid-1960s and also the early 1980s - retirement planning seems like something your mother and father or other "old people" would do. But you know what? With a lot of "baby boomers" either already in the midst of retirement or observing it in the near future, "Generation X" is the next generation of folks to reach retirement. Sure, it's still a ways off, but those in their 30s and 40s ought to begin focusing their investment planning on retirement and making certain they've got the kind of retirement they are working so hard to enjoy. Here are some tips on planning for retirement:
Retirement life in the future will be different than the retirement in the present day. It will likely be much 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 the past.
On the bright side, folks are living longer than ever. As of a few years 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 four years more than the average life span in 1980. Therefore investment planning for retirement has to account for a longer period of time right now than a generation or two in the past.
Social Security and Retirement - Lyons, IL
On the downside, Social Security is going to be a far less dependable income source compared to now. And 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 previous workplace. More and more, retirees will have to rely on their savings to pay for the costs of living and health insurance.
With folks living longer and needing more money to do so, retirement planning is a vital activity even for those who are half way to the standard retirement age of sixty-five. It can be a daunting task to plan for a couple of decades into the future, especially with bills, housing costs and home loans to pay right now, but procrastinating will not make it any less complicated.
Putting even just a little bit 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 supply a place where you can acquire capital earning a little interest rate until there's enough to invest in a reliable security which will yield you more like a municipal bond.
Another good strategy that could certainly and progressively build a nest egg is to put money into long-term bonds. After maturation of the bond, you'll get back your initial investment as well as all the interest that collected over the life of the bond. That's a tremendous 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 - Lyons, IL
Nevertheless, 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 isn't a retirement planning choice, 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 info, 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 folks in the Lyons, IL area.
