Retirement Planning – Clarendon Hills, Illinois
For those 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 observing it on the horizon, "Generation X" will be the next generation of folks to reach retirement. Sure, it's still a ways off, but those in their 30s and 40s have to start focusing their investment planning on retirement and making sure they've got the kind of retirement they are working so hard to enjoy. Here are some tips on preparing for retirement:
Retirement life in the future will be different than the retirement right now. It'll be better in some ways, and worse somewhat. However, the retirement planning for today's labor force needs to be far different than it was in days gone by.
On the bright side, folks 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 four years more than the average life span in 1980. Therefore investment planning for retirement has to account for an extended period of time right now than a generation or two back.
Social Security and Retiring - Clarendon Hills, Illinois
On the downside, Social Security is going to be a far less trustworthy source of income compared to 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 workplace. Increasingly more, retired persons will need to rely on their financial savings to pay for the costs of living and medical health insurance.
With folks living longer and needing extra money to do so, retirement planning is a vital activity even for those people who are half way to the common retirement age of 65. It could be a daunting task to plan for a few decades into the future, particularly with bills, rents and mortgages to pay today, but procrastinating won't make it any less difficult.
Putting even just a small amount of money now into a savings account which serves as a retirement savings plan can pay off later. The interest you receive on money in a savings account will allow your preliminary investments to grow to something sustainable. A savings account will offer a place where you can pile up capital earning a small interest rate until there is enough to invest in a reliable security which will yield you more like a municipal bond.
Another solid approach that could certainly and steadily build a nest egg is to invest in long-term bonds. On maturation of the bond, you'll get back your initial investment as well as all the interest which collected over the life of the bond. That's 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 that you can ever make.
401K and IRA - Clarendon Hills, Illinois
However, the best approach when it comes to retirement planning would be to put cash 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 into this account is tax deferred and might be tax-deductible, depending on how much is invested each year.
For more info, please feel free 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 individuals in the Clarendon Hills, Illinois area.
