Retirement Planning Company – Elmhurst, IL
For anyone in "Generation X" - defined as folks born between the mid-1960s and also the early 1980s - retirement planning sounds like something your parents or other "old people" would do. But guess what? With lots of "baby boomers" either already in the middle of retirement or viewing it on the horizon, "Generation X" will be the next generation of folks to reach retirement. Sure, it is a ways off, but those in their 30s and 40s ought to start centering their investment planning on retirement and ensuring they have the type of retirement they are working so hard to enjoy. Below are great tips on planning for retirement:
Retirement life in the future will be different than the retirement in the present day. It will be far better in some ways, and worse somewhat. But, the retirement planning for today's workforce needs to be far different than it was in yesteryear.
On the bright side, people 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 four years more than the average life span in 1980. So investment planning for retirement has to account for a longer period of time right now than a generation or two ago.
Social Security and Retirement - Elmhurst, IL
On the down side, Social Security is going to be a far less reliable 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 have to rely on their savings to pay for the costs of just living and medical health insurance.
With individuals living longer and needing additional money to do so, retirement planning is an essential activity even for those who are half way to the regular retirement age of 65. It may be a daunting task to plan for a couple of decades into the future, especially with bills, rents and mortgages to pay today, but procrastinating will not make it any less difficult.
Putting even just a small amount of money now into a savings account which functions as a retirement savings plan can pay off later on. The interest you receive on money in a savings account will allow your initial investments to grow to something sustainable. A savings account will provide a place where you can build up 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 good strategy that can certainly and steadily build a nest egg is to invest in 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. That's a significant 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 that you can ever make.
401K and IRA - Elmhurst, IL
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 people for whom a 401K isn't a retirement planning option, an IRA is the next best thing. Money put in this account is tax deferred and may be tax-deductible, depending on how much is invested annually.
For more information, please do not hesitate to contact GC Financial Advisors Ltd. at any time and we will be happy to help you! We offer 401K and IRA rollover and review services for individuals in the Elmhurst, IL area.
