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Retirement Planning – Blue Island, IL

For anyone in "Generation X" - described as people born between the mid-1960s and also the early 1980s - retirement planning may sound like something your parents or other "old people" would do. But guess what? With a lot of "baby boomers" either already in the middle of retirement or viewing it on the horizon, "Generation X" will be the next generation of folks to reach retirement. Sure, it is a ways off, but people in their 30s and 40s should begin centering their investment planning on retirement and making sure they've got the type of retirement they are working hard to enjoy. Here are some tips on planning for retirement:

Retirement life in the foreseeable future will be different than the retirement right now. It will likely be much 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 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 now than a generation or two back.

Social Security and Retirement - Blue Island, 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 now will be able to rely on a work pension and enjoy lifetime benefits from their previous employer. Increasingly more, retired people will have to rely on their savings to cover the costs of living and medical health insurance.

With individuals living longer and needing extra money to do so, retirement planning is an essential activity even for those people 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, particularly with bills, rents and mortgages to pay right now, but procrastinating will not make it any less difficult.

Placing even just a small amount of money now into a savings account that functions as a retirement savings plan can pay off later. The interest you receive on money in a savings account will allow your initial investments to grow to something sustainable. A savings account will provide a place where you can accumulate capital earning a little interest rate until there is enough to invest in a reliable security that will yield you more like a municipal bond.

Another good strategy that could surely and progressively build a nest egg is to invest in long-term bonds. After maturation of the bond, you'll get back your initial investment along with all the interest that collected over the lifetime of the bond. This is a tremendous amount of money for a 20- or 30-year bond-money that 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 With Retirement - Blue Island, IL

Nevertheless, the best approach when it comes to retirement planning is to put funds 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 option, 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 each year.

For more information, please do not 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 Blue Island, IL area.

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