Retirement Planning – Bedford Park, IL
For the people in "Generation X" - defined as individuals born between the mid-1960s and the early 1980s - retirement planning sounds like something your mother and father or other "old people" would do. But you know what? With a lot of "baby boomers" either already in the midst of retirement or looking at it in the near future, "Generation X" will be the next generation of individuals to reach old age. Sure, it's still a ways off, but those in their 30s and 40s will need to begin centering their investment planning on retirement and ensuring they have the kind of retirement they are working so hard to enjoy. Below are great tips on planning for retirement:
Retirement life in the future will be different than the retirement right now. It will be much better in some ways, and worse somewhat. However, the retirement planning for today's workforce must be far different than it was in the past.
On the bright side, folks 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 over 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 Retirement - Bedford Park, IL
On the downside, Social Security is going to be a far less dependable income source compared to now. And the likelihood is 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, retired people will have to depend on their financial savings to cover the costs of living and medical health insurance.
With folks living for a longer time and needing additional money to do so, retirement planning is a vital activity even for those people who are halfway to the common retirement age of 65. It may be a daunting task to plan for a few decades into the future, particularly with bills, rents and home loans to pay today, but procrastinating will not make it any less difficult.
Placing even just a small amount of cash 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 initial investments to grow to something sustainable. A savings account will give you a place where you can pile up capital earning a small interest rate until there is enough to invest in a trusted security that will yield you more like a municipal bond.
Another solid approach that could surely and steadily build a nest egg is to put money into long-term bonds. Upon maturation of the bond, you will get back your initial investment as well as all the interest that collected over the life of the bond. That's a significant amount of money for a 20- or 30-year bond-money that could provide a good foundation for retirement. And a municipal or government bond is really as safe an investment that you can ever make.
401K and IRA - Bedford Park, IL
Nonetheless, the best approach when it comes to retirement planning is to put cash in a 401K plan at work or in an IRA opened with an investment house. For people 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 might be tax-deductible, depending on how much is invested every year.
For more info, please feel free 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 folks in the Bedford Park, IL area.
