Retirement Planning Company – Bedford Park, Illinois
For the people in "Generation X" - defined as people born between the mid-1960s and also 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 middle of retirement or observing it in the near future, "Generation X" is the next generation of folks to reach old age. Sure, it is still a ways off, but those in their 30s and 40s have to start focusing their investment planning on retirement and ensuring they have the kind 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 in the present day. It'll be much better in some ways, and worse in some ways. However, the retirement planning for today's workforce needs to be far different than it was in earlier times.
On the bright side, people are living longer than ever. As of a short while 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 four years more than the average life span in 1980. So investment planning for retirement has to account for a longer period of time now than a generation or two ago.
Social Security and Retirement - Bedford Park, Illinois
On the down side, Social Security is going to be a far less reliable source of income compared to now. And also the likelihood is slim-and getting slimmer each 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. Increasingly more, retirees will need to rely on their savings to cover the expenses of living and health insurance.
With individuals living for a longer time and needing additional money to do so, retirement planning is a vital activity even for those who are half way to the standard retirement age of sixty-five. It may be an intimidating task to plan for a couple of decades into the future, especially with bills, housing costs and home loans to pay right now, but procrastinating will not make it any less complicated.
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 get on money in a savings account will allow your preliminary investments to grow to something sustainable. A savings account will give you a place where you can accumulate capital earning a little interest rate until there's enough to invest in a trusted security that will yield you more like a municipal bond.
Another solid approach that may certainly and steadily build a nest egg is to put money into long-term bonds. On maturation of the bond, you'll get back your initial investment as well as all the interest that 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 nice foundation for retirement. And a municipal or government bond is really as safe an investment that you can ever make.
401K and IRA With Retirement - Bedford Park, 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 people for whom a 401K isn't 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 each year.
For more details, please don't hesitate 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 individuals in the Bedford Park, Illinois area.
