Retirement Planning Services – Brookfield
For those in "Generation X" - described as individuals 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 individuals to reach old age. Sure, it's still a ways off, but those in their 30s and 40s should start focusing their investment planning on retirement and ensuring they've got the sort of retirement they are working hard to have. Below are great tips on preparing for retirement:
Retirement life in the foreseeable future will be different than the retirement of today. It'll be better in some ways, and worse somewhat. But, the retirement planning for today's workforce needs to be far different than it was in yesteryear.
On the bright side, folks 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. Therefore investment planning for retirement has to account for a longer time of time now than a generation or two in the past.
Social Security and Retiring - Brookfield
On the down side, Social Security will probably be a far less trustworthy income source than it is now. And also the likelihood is 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 employer. Increasingly more, retired people will need to depend on their financial savings to pay for the costs of living and health insurance.
With folks living longer and needing additional money to do so, retirement planning is a vital activity even for those who are half way to the standard retirement age of sixty-five. It can be a daunting task to plan for a few decades into the future, especially with bills, rents and mortgages to pay today, but procrastinating won't make it any easier.
Putting even just a little bit of cash into a savings account which functions 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 accumulate capital earning a small interest rate until there is enough to invest in a trusted security that will yield you more like a municipal bond.
Another good strategy that can surely and steadily build a nest egg is to put money into 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 lifetime of the bond. That's a considerable amount of money for a 20- or 30-year bond-money that can 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 - Brookfield
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 people for whom a 401K is not a retirement planning choice, an IRA is the next best thing. Money put into this account is tax deferred and may be tax-deductible, depending on how much is invested each year.
For more info, please don't hesitate to contact GC Financial Advisors Ltd. at any time and we'll be happy to help you! We provide 401K and IRA rollover and review services for individuals in the Brookfield area.
