Retirement Planning Company – Berwyn, Illinois
For anyone in "Generation X" - defined as people born between the mid-1960s and also the early 1980s - retirement planning may sound like something your mother and father or other "old people" might do. But you know what? With many "baby boomers" either already in the midst of retirement or observing it on the horizon, "Generation X" is definitely the next generation of folks to reach old age. Sure, it's still a ways off, but people in their 30s and 40s should begin focusing their investment planning on retirement and making sure they've got the sort of retirement they are working hard to have. Here are some tips on preparing for retirement:
Retirement life in the future will be different than the retirement right now. It will be much 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 days gone by.
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 - Berwyn, Illinois
On the downside, Social Security will likely be a far less trustworthy source of income than it is now. And the odds are 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 former workplace. Increasingly more, retired persons will need to rely on their savings to cover the expenses of living and medical health insurance.
With people living for a longer time and needing extra money to do so, retirement planning is an essential activity even for those people who are halfway to the standard retirement age of sixty-five. It could be an intimidating task to plan for a couple of decades into the future, particularly with bills, housing costs and mortgages to pay today, but procrastinating will not make it any less difficult.
Putting even just a little bit of cash into a savings account which works as a retirement savings plan can pay off later on. The interest you receive on money in a savings account will allow your preliminary investments to grow to something sustainable. A savings account will supply a place where you can acquire capital earning a little interest rate until there's enough to invest in a reliable security that will yield you more like a municipal bond.
Another good approach which could certainly and steadily build a nest egg is to invest in long-term bonds. On maturation of the bond, you'll get back your initial investment as well as all the interest which collected over the life of the bond. That's a considerable amount of money for a 20- or 30-year bond-money which could provide a great foundation for retirement. And a municipal or government bond is as safe an investment as you can ever make.
401K and IRA - Berwyn, Illinois
However, the best approach when it comes to retirement planning is to put cash in a 401K plan at work or in an IRA opened with an investment house. For those 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 might be tax-deductible, depending on how much is invested annually.
For more info, please don't hesitate to contact GC Financial Advisors Ltd. at any time and we'll be glad to help you! We provide 401K and IRA rollover and review services for individuals in the Berwyn, Illinois area.
