Retirement Planning Company – Dolton, IL
For the people in "Generation X" - described as folks born between the mid-1960s and also the early 1980s - retirement planning seems like something your parents or other "old people" might do. But guess what? With a lot of "baby boomers" either already in the middle of retirement or observing it in the near future, "Generation X" is definitely the next generation of individuals to reach old age. Sure, it's still a ways off, but those in their 30s and 40s will need to start centering their investment planning on retirement and making sure they've got the type of retirement they are working hard to enjoy. Here are some tips on preparing 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 needs to be far different than it was in yesteryear.
On the bright side, people 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 over 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 Retirement - Dolton, IL
On the down side, Social Security will likely be a far less trustworthy source of income compared to now. And also the likelihood is slim-and getting slimmer every 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, retirees will have to rely on their financial savings to pay for the costs of living and health insurance.
With folks living longer and needing more cash to do so, retirement planning is a vital activity even for those who are halfway to the common retirement age of 65. It may be a daunting task to plan for a couple of decades into the future, especially with bills, rents and home loans to pay today, but procrastinating will not make it any less difficult.
Placing even just a small amount of money now into a savings account which functions as a retirement savings plan can pay off in the future. The interest you get on money in a savings account will allow your preliminary investments to grow to something sustainable. A savings account will supply a place where you can accumulate capital earning a small 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 certainly and gradually build a nest egg is to invest in 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 as safe an investment as you can ever make.
401K and IRA With Retirement - Dolton, IL
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 people for whom a 401K is not a retirement planning choice, an IRA is the next best thing. Money placed in this account is tax deferred and may be tax-deductible, depending on how much is invested annually.
For more info, please do not hesitate to contact GC Financial Advisors Ltd. at any time and we'll be glad to help you! We provide 401K and IRA rollover and review services for folks in the Dolton, IL area.
