Retirement Planning – Elk Grove Village
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" would do. But you know what? With many "baby boomers" either already in the middle of retirement or observing it on the horizon, "Generation X" is definitely the next generation of men and women 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 have the type of retirement they are working so hard to have. Here are some tips on planning for retirement:
Retirement life in the foreseeable future will be different than the retirement of today. It'll be much better in some ways, and worse somewhat. However, the retirement planning for today's labor force must be far different than it was in days gone by.
On the bright side, individuals 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 over 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 now than a generation or two in the past.
Social Security and Retiring - Elk Grove Village
On the down side, Social Security will probably be a far less dependable 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 former workplace. Increasingly more, retirees will have to depend on their financial savings to cover the costs of just living and health insurance.
With people living longer and needing more cash to do so, retirement planning is an essential activity even for those who are half way to the regular retirement age of sixty-five. It could be a daunting task to plan for a couple of decades into the future, particularly with bills, rents and home loans to pay today, but procrastinating won't make it any less complicated.
Putting even just a little bit of money now into a savings account that works as a retirement savings plan can pay off later. 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 accumulate capital earning a little interest rate until there is enough to invest in a trusted security that will yield you more like a municipal bond.
Another solid strategy that can certainly and gradually build a nest egg is to invest in long-term bonds. After maturation of the bond, you will get back your initial investment and also all the interest that collected over the lifetime of the bond. This is 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 - Elk Grove Village
Nonetheless, the best approach when it comes to retirement planning would be to put funds 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 choice, an IRA is the next best thing. Money placed in this account is tax deferred and may 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 will be glad to help you! We offer 401K and IRA rollover and review services for folks in the Elk Grove Village area.
