Retirement Planning Company – Deerfield, IL
For anyone in "Generation X" - defined as folks born between the mid-1960s and the early 1980s - retirement planning seems like something your parents or other "old people" would do. But you know what? With lots of "baby boomers" either already in the midst of retirement or observing it in the near future, "Generation X" is the next generation of men and women to reach retirement. Sure, it is a ways off, but people in their 30s and 40s need to start centering their investment planning on retirement and ensuring they've got the sort of retirement they are working hard to enjoy. Below are great tips on planning for retirement:
Retirement life in the foreseeable future will be different than the retirement of today. It will likely be better in some ways, and worse somewhat. However, the retirement planning for today's labor force must be far different than it was in days gone by.
On the bright side, folks 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. So investment planning for retirement has to account for a longer time of time right now than a generation or two in the past.
Social Security and Retiring - Deerfield, IL
On the downside, Social Security will probably be a far less reliable income source than it is now. And 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 former workplace. Increasingly more, retirees will need to depend on their financial savings to cover the expenses of living and medical health insurance.
With people living longer and needing extra money to do so, retirement planning is a vital activity even for those who are halfway to the common retirement age of sixty-five. It may be a daunting task to plan for a few decades into the future, particularly with bills, rents and home loans to pay right now, but procrastinating will not make it any easier.
Putting even just a small amount of money now into a savings account which functions 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 provide a place where you can acquire capital earning a little interest rate until there's enough to invest in a trusted security that will yield you more like a municipal bond.
Another solid approach that could certainly and gradually 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 which collected over the life of the bond. This is a significant amount of money for a 20- or 30-year bond-money that could 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 - Deerfield, IL
Nevertheless, the best approach when it comes to retirement planning would be to put funds in a 401K plan at work or in an IRA opened with an investment house. For 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 might 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 will be glad to help you! We provide 401K and IRA rollover and review services for folks in the Deerfield, IL area.
