Retirement Planning Services – Dolton
For the people in "Generation X" - defined as individuals born between the mid-1960s and the early 1980s - retirement planning sounds like something your parents or other "old people" would do. But guess what? With many "baby boomers" either already in the midst of retirement or viewing it on the horizon, "Generation X" stands out as the next generation of men and women to reach retirement. Sure, it is a ways off, but those in their 30s and 40s will need to begin centering their investment planning on retirement and making sure they have 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 in the present day. It will be far better in some ways, and worse in some ways. But, the retirement planning for today's labor force needs to be far different than it was in days gone by.
On the bright side, folks 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 ago.
Social Security and Retiring - Dolton
On the down side, Social Security will likely be a far less reliable source of income compared to now. And the odds are slim-and getting slimmer each year-that retirees 20 and 30 years from now will be able to rely on a work pension and enjoy lifetime benefits from their previous employer. Increasingly more, retirees will have to rely on their savings to pay for the expenses of just living and health insurance.
With folks living longer and needing more money to do so, retirement planning is a vital activity even for those people who are halfway to the common retirement age of 65. It may be an intimidating task to plan for a couple of decades into the future, especially with bills, rents and home loans to pay today, but procrastinating won't make it any less complicated.
Putting even just a small amount of money now into a savings account that works as a retirement savings plan can pay off in the future. The interest you get on money in a savings account will allow your initial investments to grow to something sustainable. A savings account will supply a place where you can build up capital earning a little interest rate until there is enough to invest in a reliable security that will yield you more like a municipal bond.
Another good approach that could surely and progressively build a nest egg is to invest in long-term bonds. On maturation of the bond, you will get back your initial investment and also all the interest that collected over the life of the bond. That's a considerable amount of money for a 20- or 30-year bond-money that could provide a great foundation for retirement. And a municipal or government bond is really as safe an investment as you can ever make.
401K and IRA - Dolton
However, the best approach when it comes to retirement planning is to put cash 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 choice, 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 each year.
For more details, please don't hesitate to contact GC Financial Advisors Ltd. at any time and we will be happy to help you! We provide 401K and IRA rollover and review services for individuals in the Dolton area.
