Retirement Planning – Arlington Heights, IL
For the people in "Generation X" - defined as individuals born between the mid-1960s and also the early 1980s - retirement planning sounds like something your parents 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 old age. Sure, it is a ways off, but people in their 30s and 40s should start centering their investment planning on retirement and ensuring they have the type of retirement they are working so hard to have. Below are great tips on planning 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. But, the retirement planning for today's labor force needs to be far different than it was in days gone by.
On the bright side, people 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 greater 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 a longer period of time right now than a generation or two ago.
Social Security and Retiring - Arlington Heights, IL
On the down side, Social Security is going to be a far less reliable source of income compared to 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 workplace. Increasingly more, retirees will need to depend on their savings to cover the costs of just living and health insurance.
With folks living for a longer time and needing more cash to do so, retirement planning is an essential activity even for those who are half way to the common retirement age of 65. It could be a daunting task to plan for a couple of decades into the future, especially with bills, housing costs and home loans to pay today, but procrastinating will not make it any less difficult.
Putting even just a little bit of cash 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 offer a place where you can acquire capital earning a little interest rate until there's enough to invest in a reliable security that will yield you more like a municipal bond.
Another good strategy that can certainly and gradually build a nest egg is to invest in long-term bonds. Upon maturation of the bond, you'll get back your initial investment as well as all the interest that collected over the lifetime of the bond. This is a considerable amount of money for a 20- or 30-year bond-money that can 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 - Arlington Heights, IL
Nonetheless, the best approach when it comes to retirement planning is to put cash 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 choice, an IRA is the next best thing. Money put in this account is tax deferred and may be tax-deductible, depending on how much is invested every 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 individuals in the Arlington Heights, IL area.
