Retirement Planning – Cicero, Illinois
For the people in "Generation X" - described as individuals born between the mid-1960s and also the early 1980s - retirement planning sounds like something your parents or other "old people" would do. But guess what? With many "baby boomers" either already in the middle of retirement or looking at it in the near future, "Generation X" will be the next generation of people to reach old age. Sure, it is still a ways off, but those in their 30s and 40s should begin focusing their investment planning on retirement and making certain they've got the sort of retirement they are working so 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 far better in some ways, and worse in some ways. But, the retirement planning for today's workforce must be far different than it was in the past.
On the bright side, folks 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. 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 - Cicero, Illinois
On the down side, Social Security will likely be a far less reliable income source compared to now. And the odds are 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 previous workplace. More and more, retirees will have to depend on their financial savings to pay for the expenses of living and medical health insurance.
With individuals living longer and needing more money to do so, retirement planning is a vital activity even for those people who are halfway to the standard retirement age of sixty-five. It can be an intimidating task to plan for a few decades into the future, particularly with bills, rents and mortgages to pay today, but procrastinating will not make it any easier.
Placing even just a small amount of money now into a savings account that functions as a retirement savings plan can pay off in the future. The interest you get 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 little interest rate until there is enough to invest in a reliable security that will yield you more like a municipal bond.
Another solid approach that could surely and gradually build a nest egg is to put money into long-term bonds. Upon maturation of the bond, you'll get back your initial investment and also all the interest that collected over the lifetime of the bond. This is a significant amount of money for a 20- or 30-year bond-money that could provide a good foundation for retirement. And a municipal or government bond is as safe an investment that you can ever make.
401K and IRA - Cicero, Illinois
Nonetheless, 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 the 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 every year.
For more information, please feel free to contact GC Financial Advisors Ltd. at any time and we'll be glad to help you! We offer 401K and IRA rollover and review services for individuals in the Cicero, Illinois area.
