Retirement Planning Company – Carol Stream, Illinois
For the people in "Generation X" - described as people 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 a lot of "baby boomers" either already in the midst of retirement or viewing it in the near future, "Generation X" is the next generation of individuals to reach retirement. Sure, it is still a ways off, but people in their 30s and 40s need to start centering their investment planning on retirement and ensuring they've got the type of retirement they are working so hard to have. Below are great tips on planning for retirement:
Retirement life in the future will be different than the retirement in the present day. It will be much better in some ways, and worse in some ways. 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 a few years 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 - Carol Stream, Illinois
On the downside, Social Security will probably be a far less reliable source of income than it is now. And 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, retirees will have to rely on their savings to pay for the expenses of living and health insurance.
With people living for a longer time and needing extra money to do so, retirement planning is an essential activity even for those people who are halfway to the regular retirement age of sixty-five. It may be a daunting task to plan for a few decades into the future, particularly with bills, rents and home loans to pay today, but procrastinating will not make it any less difficult.
Putting even just a small amount of cash into a savings account that works as a retirement savings plan can pay off in the future. 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 small interest rate until there's enough to invest in a trusted security that will yield you more like a municipal bond.
Another solid approach which could surely and steadily build a nest egg is to invest in long-term bonds. Upon maturation of the bond, you'll 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 nice foundation for retirement. And a municipal or government bond is as safe an investment that you can ever make.
401K and IRA With Retirement - Carol Stream, Illinois
However, the best approach when it comes to retirement planning would be to put money in a 401K plan at work or in an IRA opened with an investment house. For those for whom a 401K is not a retirement planning option, 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 don't hesitate to contact GC Financial Advisors Ltd. at any time and we will be happy to help you! We offer 401K and IRA rollover and review services for folks in the Carol Stream, Illinois area.
