Retirement Planning Company – Niles
For anyone in "Generation X" - described as folks born between the mid-1960s and also the early 1980s - retirement planning seems like something your parents or other "old people" might do. But you know what? With many "baby boomers" either already in the midst of retirement or viewing it in the near future, "Generation X" will be the next generation of men and women to reach old age. Sure, it is a ways off, but those in their 30s and 40s need to begin centering their investment planning on retirement and making certain they have the kind of retirement they are working hard to have. Here are some tips on preparing for retirement:
Retirement life in the foreseeable future will be different than the retirement right now. It will likely be much better in some ways, and worse in some ways. However, 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 a short while 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 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 Retirement - Niles
On the downside, Social Security will probably be a far less reliable source of income 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 workplace. Increasingly more, retirees will need to depend on their financial savings to pay for the costs of just living and health insurance.
With individuals living longer and needing additional money to do so, retirement planning is a vital activity even for those who are half way to the common retirement age of sixty-five. It may be a daunting task to plan for a few decades into the future, particularly with bills, rents and mortgages to pay right now, but procrastinating will not make it any less complicated.
Putting even just a small amount of cash into a savings account which functions as a retirement savings plan can pay off later. 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 pile up capital earning a small interest rate until there's enough to invest in a trusted security that will yield you more like a municipal bond.
Another good strategy which could certainly and progressively build a nest egg is to put money into long-term bonds. On maturation of the bond, you'll get back your initial investment and also all the interest which collected over the life of the bond. That's a tremendous amount of money for a 20- or 30-year bond-money which could provide a good foundation for retirement. And a municipal or government bond is really as safe an investment as you can ever make.
401K and IRA - Niles
Nevertheless, the best approach when it comes to retirement planning would be to put funds in a 401K plan at your workplace or in an IRA opened with an investment house. For those 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 Niles area.
