Retirement Planning Services – Elgin, IL
For anyone in "Generation X" - described as people born between the mid-1960s and the early 1980s - retirement planning seems like something your mother and father or other "old people" might do. But guess what? With many "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 individuals to reach retirement. Sure, it is still a ways off, but people in their 30s and 40s need to begin focusing their investment planning on retirement and making sure they have the kind of retirement they are working hard to enjoy. Here are some tips on planning for retirement:
Retirement life in the foreseeable future will be different than the retirement right now. It will be far better in some ways, and worse in some ways. However, the retirement planning for today's workforce must be far different than it was in days gone by.
On the bright side, people 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 4 years more than the average life span in 1980. So investment planning for retirement has to account for a longer time of time right now than a generation or two back.
Social Security and Retiring - Elgin, IL
On the down side, Social Security will likely be a far less dependable source of income than it is now. And the odds are 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 workplace. Increasingly more, retired persons will need to depend on their savings to cover the expenses of living and medical health insurance.
With folks living for a longer time and needing more cash to do so, retirement planning is an essential activity even for those who are halfway to the standard retirement age of 65. It can be a daunting task to plan for a few decades into the future, especially with bills, rents and home loans to pay today, but procrastinating will not make it any less complicated.
Placing even just a small amount of cash into a savings account which serves 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 give you a place where you can build up capital earning a small 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 gradually build a nest egg is to invest in long-term bonds. Upon maturation of the bond, you'll get back your initial investment as well as all the interest which collected over the life of the bond. That's a significant amount of money for a 20- or 30-year bond-money that could provide a nice foundation for retirement. And a municipal or government bond is really as safe an investment as you can ever make.
401K and IRA With Retirement - Elgin, IL
Nonetheless, 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 those for whom a 401K is not a retirement planning option, an IRA is the next best thing. Money put into this account is tax deferred and might be tax-deductible, depending on how much is invested each year.
For more info, please feel free 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 Elgin, IL area.
