Retirement Planning Services – Buffalo Grove, IL
For those in "Generation X" - defined as folks born between the mid-1960s and the early 1980s - retirement planning seems like something your mother and father or other "old people" might do. But guess what? With lots 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 individuals to reach retirement. Sure, it is a ways off, but those in their 30s and 40s need to begin centering their investment planning on retirement and ensuring they've got the sort of retirement they are working so hard to enjoy. Here are some tips on planning for retirement:
Retirement life in the foreseeable future will be different than the retirement in the present day. It'll be far 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 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 4 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 in the past.
Social Security and Retiring - Buffalo Grove, IL
On the down side, Social Security will probably be a far less trustworthy income source than it is now. And also the odds are 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 previous workplace. More and more, retired persons will need to depend on their savings to pay for the costs of just living and health insurance.
With people living longer and needing extra money to do so, retirement planning is a vital activity even for those who are halfway 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, rents and home loans to pay today, but procrastinating will not make it any easier.
Putting even just a small amount of cash into a savings account that 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 give you a place where you can accumulate capital earning a little interest rate until there's enough to invest in a reliable security that will yield you more like a municipal bond.
Another good approach that may certainly and gradually build a nest egg is to put money into long-term bonds. On maturation of the bond, you will get back your initial investment and also 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 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 - Buffalo Grove, IL
However, the best approach when it comes to retirement planning would be to put funds in a 401K plan at work or in an IRA opened with an investment house. For the people for whom a 401K is not a retirement planning option, an IRA is the next best thing. Money put in this account is tax deferred and may be tax-deductible, depending on how much is invested every year.
For more info, please do not 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 folks in the Buffalo Grove, IL area.
