Retirement Planning Services – Bloomingdale
For those in "Generation X" - described as folks born between the mid-1960s and also the early 1980s - retirement planning seems like something your mother and father or other "old people" would do. But guess 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 retirement. Sure, it is still a ways off, but those in their 30s and 40s have to begin focusing their investment planning on retirement and making certain they have the type of retirement they are working hard to have. Here are some tips on planning for retirement:
Retirement life in the foreseeable future will be different than the retirement right now. It'll be far 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 yesteryear.
On the bright side, individuals 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 greater 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 period of time now than a generation or two ago.
Social Security and Retirement - Bloomingdale
On the downside, Social Security will probably be a far less trustworthy income source compared to 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 workplace. More and more, retired people will have to rely on their financial savings to cover the costs of living and health insurance.
With folks living longer and needing more cash to do so, retirement planning is an essential activity even for those who are half way to the regular retirement age of 65. It can be a daunting task to plan for a couple of decades into the future, especially with bills, housing costs and mortgages to pay right now, but procrastinating will not make it any less complicated.
Putting even just a little bit 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 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 is enough to invest in a trusted security that will yield you more like a municipal bond.
Another solid strategy which could surely and gradually build a nest egg is to invest in long-term bonds. Upon maturation of the bond, you will get back your initial investment and also all the interest which collected over the lifetime of the bond. This is a considerable amount of money for a 20- or 30-year bond-money which could provide a good foundation for retirement. And a municipal or government bond is really as safe an investment as you can ever make.
401K and IRA - Bloomingdale
However, 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 people 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 annually.
For more details, please do not hesitate 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 Bloomingdale area.
