Retirement Planning Company – Chicago, IL
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 you know what? With a lot of "baby boomers" either already in the midst of retirement or viewing it in the near future, "Generation X" is definitely the next generation of people to reach retirement. Sure, it is still a ways off, but people in their 30s and 40s ought to begin focusing their investment planning on retirement and making sure they have the sort of retirement they are working so hard to have. Below are great tips on preparing for retirement:
Retirement life in the future will be different than the retirement of today. It will likely be better in some ways, and worse somewhat. But, the retirement planning for today's labor force must be far different than it was in the past.
On the bright side, individuals are living longer than ever. As of a short while 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. 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 - Chicago, IL
On the downside, Social Security will probably be a far less reliable source of income than it is now. And also 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 previous workplace. More and more, retired people will have to rely on their financial savings to pay for the costs of just living and health insurance.
With people living longer and needing more money to do so, retirement planning is a vital activity even for those people who are halfway to the common retirement age of sixty-five. It may be an intimidating task to plan for a couple of decades into the future, particularly with bills, rents and home loans to pay right now, but procrastinating won't make it any less difficult.
Placing even just a small amount of money now into a savings account which serves as a retirement savings plan can pay off later on. The interest you receive on money in a savings account will allow your preliminary investments to grow to something sustainable. A savings account will provide a place where you can build up capital earning a little interest rate until there's enough to invest in a reliable security which will yield you more like a municipal bond.
Another solid strategy that could certainly and steadily build a nest egg is to invest in long-term bonds. After maturation of the bond, you'll get back your initial investment and also all the interest which collected over the lifetime of the bond. This is a considerable amount of money for a 20- or 30-year bond-money that could provide a nice foundation for retirement. And a municipal or government bond is as safe an investment as you can ever make.
401K and IRA With Retirement - Chicago, IL
However, the best approach when it comes to retirement planning would be to put money 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 put in this account is tax deferred and might be tax-deductible, depending on how much is invested each year.
For more information, 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 folks in the Chicago, IL area.
