Retirement Planning Company – Arlington Heights, Illinois
For the people in "Generation X" - described as individuals born between the mid-1960s and also the early 1980s - retirement planning sounds like something your mother and father or other "old people" might do. But guess 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 men and women to reach retirement. Sure, it is still a ways off, but those in their 30s and 40s should begin centering their investment planning on retirement and ensuring they've got the type of retirement they are working so hard to have. Here are some tips on planning for retirement:
Retirement life in the future will be different than the retirement of today. It'll be much better in some ways, and worse somewhat. However, the retirement planning for today's labor force needs to be far different than it was in days gone by.
On the bright side, individuals 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 greater than the average life span in 1990 and more than 4 years more than the average life span in 1980. Therefore investment planning for retirement has to account for a longer period of time now than a generation or two back.
Social Security and Retiring - Arlington Heights, Illinois
On the downside, Social Security is going to be a far less dependable source of income compared to now. And the odds are slim-and getting slimmer every year-that retirees 20 and 30 years from 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 depend on their financial savings to cover the costs of just living and medical health insurance.
With people 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 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 today, but procrastinating will not make it any less difficult.
Placing even just a little bit of money now 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 initial investments to grow to something sustainable. A savings account will offer a place where you can pile up capital earning a small interest rate until there is enough to invest in a trusted security which will yield you more like a municipal bond.
Another solid strategy that may certainly 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. This is a tremendous amount of money for a 20- or 30-year bond-money that may 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 With Retirement - Arlington Heights, Illinois
However, the best approach when it comes to retirement planning is 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 is not a retirement planning option, 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 information, please feel free to contact GC Financial Advisors Ltd. at any time and we will be happy to help you! We offer 401K and IRA rollover and review services for folks in the Arlington Heights, Illinois area.
