Retirement Planning Company – Chicago
For the people in "Generation X" - defined 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 you know what? With lots of "baby boomers" either already in the midst of retirement or looking at it on the horizon, "Generation X" is the next generation of individuals to reach retirement. Sure, it is a ways off, but people in their 30s and 40s will need to start centering their investment planning on retirement and making certain 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 will likely be better in some ways, and worse somewhat. However, the retirement planning for today's workforce needs to be far different than it was in yesteryear.
On the bright side, individuals 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 4 years more than the average life span in 1980. So 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 - Chicago
On the down side, Social Security is going to 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 right now will be able to rely on a work pension and enjoy lifetime benefits from their former employer. Increasingly more, retirees will need to depend on their financial savings to cover the expenses of living and health insurance.
With people living for a longer time and needing extra money to do so, retirement planning is a vital activity even for those who are half way to the standard retirement age of 65. It could be a daunting task to plan for a couple of decades into the future, especially with bills, rents and mortgages to pay today, but procrastinating will not make it any less difficult.
Putting even just a little bit of money now into a savings account that functions as a retirement savings plan can pay off later on. 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 acquire capital earning a small interest rate until there is enough to invest in a trusted security which will yield you more like a municipal bond.
Another good strategy that may surely and steadily 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 lifetime of the bond. That's a considerable amount of money for a 20- or 30-year bond-money that may provide a nice foundation for retirement. And a municipal or government bond is really as safe an investment that you can ever make.
401K and IRA - Chicago
However, the best approach when it comes to retirement planning would be to put cash in a 401K plan at work 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 in this account is tax deferred and may be tax-deductible, depending on how much is invested every year.
For more details, please feel free 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 individuals in the Chicago area.
