Retirement Planning Company – Crest Hill
For the people in "Generation X" - defined 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 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 definitely the next generation of individuals to reach retirement. Sure, it's still a ways off, but those in their 30s and 40s need to start centering their investment planning on retirement and making certain they have the sort of retirement they are working hard to have. Here are some tips on planning 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. However, the retirement planning for today's workforce must be far different than it was in earlier times.
On the bright side, individuals 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 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 ago.
Social Security and Retiring - Crest Hill
On the down side, Social Security is going to be a far less reliable income source than it is now. And 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 previous employer. More and more, retired people will have to rely on their financial savings to cover the costs of just living and health insurance.
With individuals living for a longer time and needing more cash to do so, retirement planning is an essential activity even for those people who are halfway to the standard retirement age of 65. It can be a daunting task to plan for a few decades into the future, especially 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 cash into a savings account that functions as a retirement savings plan can pay off later. 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 build 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 good approach that can surely and steadily build a nest egg is to invest in long-term bonds. Upon maturation of the bond, you will 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 can provide a nice foundation for retirement. And a municipal or government bond is really as safe an investment that you can ever make.
401K and IRA With Retirement - Crest Hill
However, the best approach when it comes to retirement planning is to put funds 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 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 annually.
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 Crest Hill area.
