Retirement Planning Services – Barrington
For those in "Generation X" - defined as individuals born between the mid-1960s and the early 1980s - retirement planning may sound like something your parents or other "old people" would do. But guess what? With lots of "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 retirement. Sure, it's still a ways off, but people in their 30s and 40s should begin focusing their investment planning on retirement and ensuring they've got the sort of retirement they are working so hard to enjoy. Here are some tips on preparing for retirement:
Retirement life in the foreseeable future will be different than the retirement right now. It'll be much better in some ways, and worse somewhat. But, the retirement planning for today's labor force must be far different than it was in earlier times.
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 4 years more than the average life span in 1980. Therefore investment planning for retirement has to account for a longer time of time right now than a generation or two ago.
Social Security and Retirement - Barrington
On the downside, Social Security will likely be a far less trustworthy source of income compared to now. And also the odds are 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. More and more, retired persons will need to rely on their financial savings to pay for the expenses of living and medical health insurance.
With folks living longer and needing more cash to do so, retirement planning is an essential activity even for those people who are halfway to the regular retirement age of 65. It could be an intimidating task to plan for a few decades into the future, particularly with bills, housing costs and mortgages to pay right now, but procrastinating won't make it any easier.
Putting 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 receive on money in a savings account will allow your preliminary investments to grow to something sustainable. A savings account will offer a place where you can acquire capital earning a small interest rate until there is enough to invest in a reliable security which 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. After maturation of the bond, you'll get back your initial investment along with all the interest that collected over the life of the bond. That's a considerable 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 as safe an investment that you can ever make.
401K and IRA With Retirement - Barrington
Nonetheless, the best approach when it comes to retirement planning would be to put money 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 choice, 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 annually.
For more details, please do not hesitate to contact GC Financial Advisors Ltd. at any time and we will be glad to help you! We offer 401K and IRA rollover and review services for individuals in the Barrington area.
