Retirement Planning Services – Dolton
For the people in "Generation X" - described as folks born between the mid-1960s and the early 1980s - retirement planning sounds like something your mother and father or other "old people" might do. But you know what? With many "baby boomers" either already in the middle of retirement or observing it in the near future, "Generation X" will be the next generation of individuals to reach retirement. Sure, it's still a ways off, but those in their 30s and 40s have to start focusing their investment planning on retirement and making sure they've got the kind of retirement they are working so hard to have. Below are great tips on planning for retirement:
Retirement life in the foreseeable future will be different than the retirement of today. It'll be far better in some ways, and worse in some ways. However, the retirement planning for today's workforce needs to be far different than it was in earlier times.
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 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 a longer period of time now than a generation or two in the past.
Social Security and Retirement - Dolton
On the downside, Social Security will probably be a far less trustworthy source of income than it is now. And also the likelihood is 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. More and more, retirees will have to depend on their savings to pay for the expenses of just living and 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 regular retirement age of sixty-five. It can be an intimidating task to plan for a couple of decades into the future, especially with bills, housing costs and mortgages to pay today, but procrastinating will not make it any easier.
Placing even just a small amount of cash 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 give you a place where you can acquire capital earning a small interest rate until there is enough to invest in a reliable security which will yield you more like a municipal bond.
Another good approach that can certainly and steadily build a nest egg is to invest in long-term bonds. On maturation of the bond, you'll get back your initial investment as well as all the interest that collected over the lifetime of the bond. That's a considerable amount of money for a 20- or 30-year bond-money that can provide a good foundation for retirement. And a municipal or government bond is really as safe an investment as you can ever make.
401K and IRA - Dolton
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 the 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'll be glad to help you! We provide 401K and IRA rollover and review services for folks in the Dolton area.
