Retirement Planning Services – Bartlett
For anyone in "Generation X" - defined as individuals born between the mid-1960s and the early 1980s - retirement planning seems like something your parents 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 on the horizon, "Generation X" stands out as the next generation of men and women to reach old age. Sure, it's still a ways off, but those in their 30s and 40s should begin centering their investment planning on retirement and making certain they have the sort of retirement they are working so hard to enjoy. Here are some tips on planning for retirement:
Retirement life in the foreseeable future will be different than the retirement of today. It will likely be better in some ways, and worse somewhat. 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 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 back.
Social Security and Retiring - Bartlett
On the downside, Social Security is going to be a far less dependable income source than it is 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 former workplace. Increasingly more, retired people will have to depend on their financial savings to cover the expenses of living and 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 common retirement age of 65. It could be a daunting task to plan for a couple of decades into the future, especially with bills, rents and mortgages to pay today, but procrastinating will not make it any less complicated.
Placing 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 preliminary 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 approach that may surely and gradually build a nest egg is to invest in long-term bonds. After maturation of the bond, you will 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 that may provide a great foundation for retirement. And a municipal or government bond is as safe an investment that you can ever make.
401K and IRA - Bartlett
However, the best approach when it comes to retirement planning is to put funds in a 401K plan at work 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 put in this account is tax deferred and might be tax-deductible, depending on how much is invested each year.
For more info, please do not hesitate 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 Bartlett area.
