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Retirement Planning Services – Bellwood, IL

For anyone in "Generation X" - defined as folks born between the mid-1960s and the early 1980s - retirement planning may sound like something your parents or other "old people" might 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's still a ways off, but people in their 30s and 40s will need to begin centering their investment planning on retirement and making sure they've got the type 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 will likely be better in some ways, and worse in some ways. But, the retirement planning for today's workforce must be far different than it was in earlier times.

On the bright side, folks 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 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 time of time right now than a generation or two in the past.

Social Security and Retirement - Bellwood, IL

On the downside, Social Security will probably be a far less trustworthy 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 previous employer. Increasingly more, retirees will have to depend on their financial savings to pay for the costs of living and medical health insurance.

With folks living longer and needing more money to do so, retirement planning is a vital activity even for those people who are halfway to the regular 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 won't make it any less complicated.

Placing even just a small amount of cash into a savings account that functions as a retirement savings plan can pay off in the future. The interest you receive on money in a savings account will allow your preliminary investments to grow to something sustainable. A savings account will provide a place where you can build up 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 strategy 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. That's a considerable 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 really as safe an investment as you can ever make.

401K and IRA - Bellwood, IL

Nevertheless, the best approach when it comes to retirement planning would be to put money in a 401K plan at work or in an IRA opened with an investment house. For the people for whom a 401K isn't a retirement planning option, 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 glad to help you! We offer 401K and IRA rollover and review services for individuals in the Bellwood, IL area.

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