Retirement Planning Company – Dundee, Illinois
For those in "Generation X" - defined as individuals 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 lots of "baby boomers" either already in the middle of retirement or observing it on the horizon, "Generation X" stands out as the next generation of folks to reach retirement. Sure, it's still a ways off, but people in their 30s and 40s will need to begin focusing their investment planning on retirement and making sure they've got the kind of retirement they are working hard to have. Below are great tips on planning for retirement:
Retirement life in the future will be different than the retirement right now. It'll be far better in some ways, and worse somewhat. However, the retirement planning for today's workforce needs to be far different than it was in yesteryear.
On the bright side, individuals are living longer than ever. As of not too long 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. Therefore investment planning for retirement has to account for a longer time of time right now than a generation or two ago.
Social Security and Retiring - Dundee, Illinois
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 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 workplace. More and more, retired people will need to rely on their savings to pay for the costs of just living and medical health insurance.
With individuals living longer and needing more cash to do so, retirement planning is an essential activity even for those who are halfway to the regular retirement age of 65. It could be an intimidating task to plan for a couple of decades into the future, particularly with bills, housing costs and mortgages to pay today, but procrastinating will not make it any less difficult.
Putting even just a small amount of cash into a savings account which works as a retirement savings plan can pay off in the future. The interest you receive 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 acquire capital earning a little interest rate until there is enough to invest in a trusted security which will yield you more like a municipal bond.
Another good approach that can certainly and progressively build a nest egg is to put money into long-term bonds. After maturation of the bond, you'll get back your initial investment along with all the interest which collected over the lifetime of the bond. This is a tremendous 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 as safe an investment that you can ever make.
401K and IRA With Retirement - Dundee, Illinois
Nevertheless, the best approach when it comes to retirement planning would be to put cash in a 401K plan at your workplace 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 might be tax-deductible, depending on how much is invested every year.
For more info, please don't hesitate to contact GC Financial Advisors Ltd. at any time and we'll be happy to help you! We provide 401K and IRA rollover and review services for folks in the Dundee, Illinois area.
