Retirement Planning Company – Markham, IL
For anyone in "Generation X" - defined as individuals born between the mid-1960s and also the early 1980s - retirement planning may sound like something your parents or other "old people" would do. But you know what? With a lot of "baby boomers" either already in the middle of retirement or observing it in the near future, "Generation X" will be the next generation of individuals to reach old age. Sure, it is a ways off, but people in their 30s and 40s should start centering their investment planning on retirement and making sure they have the type of retirement they are working hard to have. Below are great tips on preparing for retirement:
Retirement life in the future will be different than the retirement of today. It will likely be far better in some ways, and worse somewhat. However, the retirement planning for today's labor force must be far different than it was in yesteryear.
On the bright side, individuals 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 four years more than the average life span in 1980. So investment planning for retirement has to account for an extended period of time right now than a generation or two back.
Social Security and Retiring - Markham, IL
On the down side, Social Security will likely be a far less dependable source of income than it is now. And the likelihood is 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 financial savings to cover the costs of living and medical health insurance.
With people living longer and needing more money to do so, retirement planning is a vital 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, housing costs and mortgages to pay right now, but procrastinating won't 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 later on. The interest you receive on money in a savings account will allow your preliminary investments to grow to something sustainable. A savings account will provide a place where you can build up 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 solid strategy that may surely and steadily 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 which collected over the life of the bond. That's 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 as safe an investment as you can ever make.
401K and IRA - Markham, IL
Nonetheless, 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 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 might be tax-deductible, depending on how much is invested annually.
For more details, please don't hesitate to contact GC Financial Advisors Ltd. at any time and we will be glad to help you! We provide 401K and IRA rollover and review services for folks in the Markham, IL area.
