Retirement Planning Services – Bedford Park
For the people in "Generation X" - described as individuals born between the mid-1960s and the early 1980s - retirement planning sounds like something your parents or other "old people" might do. But you know what? With a lot of "baby boomers" either already in the midst of retirement or viewing it on the horizon, "Generation X" is the next generation of individuals to reach old age. Sure, it's still a ways off, but those in their 30s and 40s should start centering their investment planning on retirement and making certain they've got the sort of retirement they are working so hard to have. Here are some tips on preparing for retirement:
Retirement life in the foreseeable future will be different than the retirement in the present day. It'll be much better in some ways, and worse in some ways. But, the retirement planning for today's labor force needs to be far different than it was in earlier times.
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 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 an extended period of time right now than a generation or two ago.
Social Security and Retiring - Bedford Park
On the down side, Social Security is going to be a far less reliable source of income than it is now. And the odds are slim-and getting slimmer every 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 employer. More and more, retired people will have to rely on their financial savings to pay for the expenses of living and health insurance.
With folks living for a longer time and needing additional money 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, especially with bills, rents and home loans to pay right now, 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 in the future. The interest you receive on money in a savings account will allow your initial investments to grow to something sustainable. A savings account will supply a place where you can build up capital earning a little interest rate until there's enough to invest in a reliable security which will yield you more like a municipal bond.
Another solid strategy that could certainly and steadily build a nest egg is to put money into long-term bonds. After maturation of the bond, you will get back your initial investment and also all the interest that collected over the lifetime of the bond. That's a tremendous amount of money for a 20- or 30-year bond-money that could 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 With Retirement - Bedford Park
However, the best approach when it comes to retirement planning would be to put funds in a 401K plan at your workplace or in an IRA opened with an investment house. For people for whom a 401K isn't a retirement planning option, 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 information, please don't hesitate to contact GC Financial Advisors Ltd. at any time and we will be happy to help you! We provide 401K and IRA rollover and review services for individuals in the Bedford Park area.
