Retirement Planning Services – Bloomingdale
For those in "Generation X" - defined as people born between the mid-1960s and also the early 1980s - retirement planning sounds like something your mother and father or other "old people" might do. But you know what? With a lot of "baby boomers" either already in the middle of retirement or looking at it in the near future, "Generation X" stands out as the next generation of folks to reach retirement. Sure, it's still a ways off, but people in their 30s and 40s ought to begin focusing their investment planning on retirement and ensuring they have the sort of retirement they are working so hard to enjoy. Here are some tips on planning for retirement:
Retirement life in the future will be different than the retirement in the present day. It will likely be far 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 days gone by.
On the bright side, people 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 four years more than the average life span in 1980. So investment planning for retirement has to account for a longer period of time right now than a generation or two back.
Social Security and Retirement - Bloomingdale
On the down side, Social Security will likely be a far less trustworthy income source compared to now. And also 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 workplace. More and more, retired people will have to rely on their financial savings to pay for the costs of living and health insurance.
With people living for a longer time and needing more money to do so, retirement planning is an essential activity even for those who are half way to the regular retirement age of 65. It could be a daunting 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 easier.
Placing even just a small amount of money now into a savings account which serves as a retirement savings plan can pay off later. 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 little interest rate until there's enough to invest in a trusted security which will yield you more like a municipal bond.
Another solid approach that may certainly and gradually build a nest egg is to put money into long-term bonds. After maturation of the bond, you will get back your initial investment along with all the interest which collected over the lifetime of the bond. That's a tremendous amount of money for a 20- or 30-year bond-money that may provide a good foundation for retirement. And a municipal or government bond is as safe an investment as you can ever make.
401K and IRA With Retirement - Bloomingdale
Nevertheless, 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 those for whom a 401K isn't a retirement planning choice, 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 every year.
For more information, please don't hesitate 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 Bloomingdale area.
