Retirement Planning Company – Dundee, Illinois
For the people in "Generation X" - defined as people born between the mid-1960s and also the early 1980s - retirement planning seems like something your mother and father or other "old people" might do. But you know what? With a lot of "baby boomers" either already in the midst of retirement or observing it in the near future, "Generation X" stands out as the next generation of folks to reach retirement. Sure, it is a ways off, but people in their 30s and 40s must start focusing their investment planning on retirement and making certain they've got the kind of retirement they are working hard to have. Below are great tips on preparing for retirement:
Retirement life in the future will be different than the retirement of today. It will likely be much better in some ways, and worse in some ways. However, the retirement planning for today's labor force needs to be far different than it was in the past.
On the bright side, people 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 four 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 in the past.
Social Security and Retirement - Dundee, Illinois
On the downside, Social Security will probably be a far less dependable income source than it is now. And also the likelihood is slim-and getting slimmer each 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, retired persons will have to rely on their savings to pay for the expenses of just living and medical health insurance.
With folks living longer and needing more cash to do so, retirement planning is an essential activity even for those people who are halfway to the standard retirement age of sixty-five. It could be an intimidating task to plan for a few decades into the future, especially with bills, housing costs and home loans to pay right now, but procrastinating won't make it any less difficult.
Putting even just a small amount of cash 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 initial investments to grow to something sustainable. A savings account will offer a place where you can acquire capital earning a small interest rate until there's enough to invest in a trusted security which will yield you more like a municipal bond.
Another solid strategy that may certainly and steadily build a nest egg is to put money into long-term bonds. On maturation of the bond, you'll get back your initial investment along with all the interest which collected over the lifetime of the bond. That's a significant amount of money for a 20- or 30-year bond-money that may provide a nice foundation for retirement. And a municipal or government bond is as safe an investment as you can ever make.
401K and IRA With Retirement - Dundee, Illinois
Nonetheless, the best approach when it comes to retirement planning is to put money 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 placed in this account is tax deferred and might be tax-deductible, depending on how much is invested annually.
For more details, please do not 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.
