Retirement Planning – Crest Hill, 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 guess what? With lots of "baby boomers" either already in the midst of retirement or looking at it on the horizon, "Generation X" will be the next generation of individuals to reach retirement. Sure, it is a ways off, but people in their 30s and 40s should begin focusing their investment planning on retirement and making sure they have the type of retirement they are working hard to enjoy. Below are great tips on planning for retirement:
Retirement life in the future will be different than the retirement right now. It will be far better in some ways, and worse somewhat. But, 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 a short while ago, the average life span of an American was 77.9 years, exactly 2.5 years greater than the average life span in 1990 and more than four years more than the average life span in 1980. So investment planning for retirement has to account for an extended period of time right now than a generation or two ago.
Social Security and Retiring - Crest Hill, Illinois
On the downside, Social Security is going to be a far less trustworthy income source compared to 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 former workplace. More and more, retirees will have to depend on their savings to cover the costs of just living and health insurance.
With folks living for a longer time and needing extra money to do so, retirement planning is an essential activity even for those people who are half way to the standard retirement age of 65. It may be a daunting task to plan for a few decades into the future, particularly with bills, housing costs and home loans to pay today, but procrastinating will not make it any less difficult.
Placing even just a small amount of cash into a savings account which works as a retirement savings plan can pay off in the future. The interest you receive on money in a savings account will allow your initial investments to grow to something sustainable. A savings account will offer a place where you can accumulate capital earning a little interest rate until there is enough to invest in a trusted security which will yield you more like a municipal bond.
Another good approach which 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 which collected over the lifetime of the bond. That's a tremendous amount of money for a 20- or 30-year bond-money which could provide a good foundation for retirement. And a municipal or government bond is really as safe an investment that you can ever make.
401K and IRA - Crest Hill, Illinois
Nonetheless, the best approach when it comes to retirement planning is to put money in a 401K plan at your workplace or in an IRA opened with an investment house. For the people for whom a 401K isn't a retirement planning option, an IRA is the next best thing. Money placed in this account is tax deferred and might be tax-deductible, depending on how much is invested annually.
For more details, please do not hesitate to contact GC Financial Advisors Ltd. at any time and we will be glad to help you! We provide 401K and IRA rollover and review services for folks in the Crest Hill, Illinois area.
