Retirement Planning Services – Bensenville, IL
For anyone in "Generation X" - defined 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 lots of "baby boomers" either already in the midst of retirement or viewing it in the near future, "Generation X" is definitely the next generation of individuals to reach retirement. Sure, it's still a ways off, but people in their 30s and 40s must start centering their investment planning on retirement and making sure they've got the kind of retirement they are working so hard to have. Here are some tips on preparing for retirement:
Retirement life in the future will be different than the retirement in the present day. It will be better in some ways, and worse somewhat. But, the retirement planning for today's labor force needs to be far different than it was in the past.
On the bright side, folks 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 more 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 a longer time of time right now than a generation or two in the past.
Social Security and Retiring - Bensenville, IL
On the downside, 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 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 need to depend on their financial savings to pay for the costs of just living and medical health insurance.
With individuals living longer and needing more cash to do so, retirement planning is a vital activity even for those who are half way to the regular retirement age of sixty-five. It may be a daunting task to plan for a few decades into the future, particularly with bills, rents and home loans to pay right now, but procrastinating will not make it any less complicated.
Putting even just a small amount of money now into a savings account which serves as a retirement savings plan can pay off later on. The interest you get 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 acquire capital earning a little interest rate until there is enough to invest in a reliable security which will yield you more like a municipal bond.
Another good strategy that may 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 along with all the interest which collected over the life of the bond. That's a significant amount of money for a 20- or 30-year bond-money that may 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 - Bensenville, IL
Nevertheless, the best approach when it comes to retirement planning is to put money 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 put into this account is tax deferred and might be tax-deductible, depending on how much is invested annually.
For more information, please feel free 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 Bensenville, IL area.
