Retirement Planning – Bellwood
For those in "Generation X" - described as people born between the mid-1960s and also the early 1980s - retirement planning seems like something your parents or other "old people" might do. But you know what? With many "baby boomers" either already in the midst of retirement or viewing it in the near future, "Generation X" stands out as the next generation of people to reach old age. Sure, it is a ways off, but those in their 30s and 40s need to begin centering their investment planning on retirement and making certain they have the type of retirement they are working hard to have. Below are great tips on planning for retirement:
Retirement life in the foreseeable future will be different than the retirement right now. It'll be better in some ways, and worse somewhat. However, the retirement planning for today's labor force must be far different than it was in the past.
On the bright side, individuals 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 greater 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 now than a generation or two back.
Social Security and Retiring - Bellwood
On the downside, Social Security will likely be a far less trustworthy income source than it is now. And also 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 former employer. Increasingly more, retired people will need to depend on their savings to cover the costs of just living and medical health insurance.
With people living for a longer time and needing more money to do so, retirement planning is a vital activity even for those people who are halfway to the standard retirement age of sixty-five. It can 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 complicated.
Placing even just a small amount of money now into a savings account that works as a retirement savings plan can pay off later on. 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 acquire capital earning a small interest rate until there's enough to invest in a trusted security that will yield you more like a municipal bond.
Another good approach that can surely and gradually build a nest egg is to put money into long-term bonds. After maturation of the bond, you'll get back your initial investment and also all the interest that collected over the life of the bond. This is a significant amount of money for a 20- or 30-year bond-money that can provide a nice foundation for retirement. And a municipal or government bond is as safe an investment that you can ever make.
401K and IRA - Bellwood
Nonetheless, 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 might be tax-deductible, depending on how much is invested each year.
For more information, please feel free to contact GC Financial Advisors Ltd. at any time and we'll be happy to help you! We provide 401K and IRA rollover and review services for individuals in the Bellwood area.