Retirement Planning – Country Club Hills
For those in "Generation X" - described as folks born between the mid-1960s and the early 1980s - retirement planning sounds like something your parents or other "old people" would do. But you know what? With a lot of "baby boomers" either already in the middle of retirement or viewing it on the horizon, "Generation X" is definitely the next generation of individuals to reach old age. Sure, it is a ways off, but those in their 30s and 40s need to begin focusing their investment planning on retirement and ensuring they have the sort of retirement they are working so hard to enjoy. Below are great tips on preparing for retirement:
Retirement life in the future will be different than the retirement in the present day. It will likely be 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, people 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 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 period of time right now than a generation or two in the past.
Social Security and Retirement - Country Club Hills
On the down side, Social Security will probably be a far less reliable source of income than it is now. And also the odds are 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 previous workplace. Increasingly more, retired people will have to depend on their financial savings to cover the expenses of living and medical health insurance.
With folks living for a longer time and needing additional money to do so, retirement planning is a vital activity even for those people who are halfway to the common retirement age of 65. It can be a daunting task to plan for a couple of decades into the future, particularly with bills, housing costs and home loans to pay right now, but procrastinating won't make it any less difficult.
Placing even just a little bit of cash into a savings account which serves as a retirement savings plan can pay off later on. The interest you get 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 accumulate 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 good strategy 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 that you can ever make.
401K and IRA With Retirement - Country Club Hills
Nevertheless, the best approach when it comes to retirement planning is to put funds in a 401K plan at work or in an IRA opened with an investment house. For those for whom a 401K is not a retirement planning option, 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 each year.
For more details, please do not hesitate 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 Country Club Hills area.
