Retirement Planning Company – Blue Island
For the people in "Generation X" - defined as people born between the mid-1960s and the early 1980s - retirement planning may sound like something your parents or other "old people" might do. But guess what? With many "baby boomers" either already in the midst of retirement or viewing it on the horizon, "Generation X" will be the next generation of people to reach retirement. Sure, it is still a ways off, but those in their 30s and 40s really need to begin focusing their investment planning on retirement and ensuring they've got the kind of retirement they are working so hard to enjoy. Below are great tips on planning for retirement:
Retirement life in the foreseeable future will be different than the retirement in the present day. It will likely be better in some ways, and worse in some ways. However, the retirement planning for today's labor force must be far different than it was in earlier times.
On the bright side, people are living longer than ever. As of a few years 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 four years more than the average life span in 1980. Therefore 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 Retirement - Blue Island
On the down side, Social Security will probably be a far less trustworthy income source than it is now. And the likelihood is slim-and getting slimmer every 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 former workplace. More and more, retired people will need to rely on their financial savings to cover the expenses of just living and medical health insurance.
With folks living for a longer time and needing more cash to do so, retirement planning is a vital activity even for those people who are half way to the regular retirement age of 65. It may be an intimidating 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 less complicated.
Putting even just a small amount of cash into a savings account that functions as a retirement savings plan can pay off in the future. The interest you get on money in a savings account will allow your initial investments to grow to something sustainable. A savings account will supply a place where you can accumulate capital earning a small interest rate until there is enough to invest in a reliable security that will yield you more like a municipal bond.
Another solid strategy which could certainly and steadily build a nest egg is to invest in long-term bonds. After maturation of the bond, you will get back your initial investment along with all the interest that collected over the life of the bond. That's a significant 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 that you can ever make.
401K and IRA - Blue Island
Nonetheless, the best approach when it comes to retirement planning would be to put cash in a 401K plan at your workplace or in an IRA opened with an investment house. For the people for whom a 401K is not a retirement planning choice, an IRA is the next best thing. Money placed in this account is tax deferred and may be tax-deductible, depending on how much is invested annually.
For more details, please feel free to contact GC Financial Advisors Ltd. at any time and we will be glad to help you! We provide 401K and IRA rollover and review services for individuals in the Blue Island area.
