Retirement Planning Services – Naperville, Illinois
For those in "Generation X" - described as folks born between the mid-1960s and the early 1980s - retirement planning sounds like something your parents or other "old people" might do. But guess what? With lots of "baby boomers" either already in the midst of retirement or looking at it on the horizon, "Generation X" is the next generation of folks to reach old age. Sure, it is still a ways off, but those in their 30s and 40s really need to begin centering their investment planning on retirement and making sure they have the kind of retirement they are working hard to have. Below are great tips on planning for retirement:
Retirement life in the foreseeable future will be different than the retirement of today. It will 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 days gone by.
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 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 an extended period of time right now than a generation or two in the past.
Social Security and Retiring - Naperville, Illinois
On the downside, Social Security will likely be a far less reliable income source compared to now. And also 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 former employer. Increasingly more, retired persons will need to depend on their financial savings to pay for the expenses of living and health insurance.
With individuals living for a longer time and needing more money to do so, retirement planning is an essential activity even for those who are half way to the standard retirement age of sixty-five. It could 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 little bit of money now into a savings account that works as a retirement savings plan can pay off later on. 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 pile up 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 solid strategy that could surely and progressively build a nest egg is to invest in long-term bonds. On maturation of the bond, you will get back your initial investment as well as all the interest that collected over the lifetime of the bond. That's a significant amount of money for a 20- or 30-year bond-money that could provide a great foundation for retirement. And a municipal or government bond is really as safe an investment as you can ever make.
401K and IRA With Retirement - Naperville, Illinois
Nevertheless, the best approach when it comes to retirement planning is to put money 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 placed in this account is tax deferred and might be tax-deductible, depending on how much is invested every year.
For more details, please do not 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 Naperville, Illinois area.
