Retirement Planning Services – Des Plaines, Illinois
For those in "Generation X" - described as folks born between the mid-1960s and also the early 1980s - retirement planning seems like something your mother and father 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" will be the next generation of men and women to reach old age. Sure, it is a ways off, but those in their 30s and 40s really need to start centering their investment planning on retirement and making sure they have the type of retirement they are working hard to have. Here are some tips on planning for retirement:
Retirement life in the foreseeable future will be different than the retirement in the present day. It'll be much better in some ways, and worse in some ways. But, the retirement planning for today's labor force must be far different than it was in yesteryear.
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. Therefore investment planning for retirement has to account for an extended period of time now than a generation or two back.
Social Security and Retiring - Des Plaines, Illinois
On the downside, Social Security will likely be a far less dependable source of income compared to now. And the odds are 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 former employer. More and more, retired people will have to depend on their savings to pay for the costs of living and health insurance.
With individuals living longer and needing extra money to do so, retirement planning is an essential activity even for those who are half way to the regular retirement age of sixty-five. It could be an intimidating task to plan for a couple of decades into the future, particularly with bills, rents and mortgages to pay today, but procrastinating won't make it any less complicated.
Placing even just a small amount of money now into a savings account that works 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 provide a place where you can pile up capital earning a small interest rate until there's enough to invest in a trusted security that will yield you more like a municipal bond.
Another good strategy that could certainly and steadily build a nest egg is to put money into long-term bonds. After maturation of the bond, you'll get back your initial investment and also all the interest that collected over the lifetime of the bond. This is a tremendous amount of money for a 20- or 30-year bond-money that could 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 - Des Plaines, Illinois
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 might be tax-deductible, depending on how much is invested every 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 offer 401K and IRA rollover and review services for individuals in the Des Plaines, Illinois area.
