Retirement Planning Services – Clarendon Hills
For anyone in "Generation X" - defined as people born between the mid-1960s and the early 1980s - retirement planning seems like something your parents or other "old people" might do. But you know what? With a lot of "baby boomers" either already in the midst of retirement or looking at it on the horizon, "Generation X" is the next generation of people to reach retirement. Sure, it is still a ways off, but people in their 30s and 40s really need to begin centering their investment planning on retirement and making sure they have the kind 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 much better in some ways, and worse somewhat. But, the retirement planning for today's workforce must be far different than it was in the past.
On the bright side, people 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 now than a generation or two in the past.
Social Security and Retiring - Clarendon Hills
On the down side, Social Security is going to be a far less dependable 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 now will be able to rely on a work pension and enjoy lifetime benefits from their previous workplace. Increasingly more, retirees will need to depend on their financial savings to pay for the expenses of living and health insurance.
With folks living for a longer time and needing more money to do so, retirement planning is an essential 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 few decades into the future, especially with bills, rents and mortgages to pay today, but procrastinating won't make it any less complicated.
Putting even just a small amount of money now into a savings account which works as a retirement savings plan can pay off later. The interest you get on money in a savings account will allow your initial investments to grow to something sustainable. A savings account will supply a place where you can acquire capital earning a little interest rate until there is enough to invest in a trusted security that will yield you more like a municipal bond.
Another solid approach that may certainly and steadily build a nest egg is to put money into long-term bonds. After maturation of the bond, you will get back your initial investment as well as all the interest which collected over the lifetime of the bond. This is a tremendous amount of money for a 20- or 30-year bond-money that may provide a good foundation for retirement. And a municipal or government bond is as safe an investment as you can ever make.
401K and IRA - Clarendon Hills
Nevertheless, the best approach when it comes to retirement planning is to put cash in a 401K plan at work or in an IRA opened with an investment house. For people for whom a 401K isn't a retirement planning option, 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 annually.
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 folks in the Clarendon Hills area.
