Retirement Planning Company – Elmwood Park, Illinois
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" might do. But guess what? With lots of "baby boomers" either already in the middle of retirement or looking at it on the horizon, "Generation X" will be the next generation of men and women to reach old age. Sure, it is still a ways off, but people in their 30s and 40s will need to start centering their investment planning on retirement and ensuring they've got the kind of retirement they are working so hard to have. Below are great tips on planning for retirement:
Retirement life in the foreseeable future will be different than the retirement right now. It'll be much better in some ways, and worse somewhat. However, the retirement planning for today's workforce must 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. So investment planning for retirement has to account for an extended period of time right now than a generation or two ago.
Social Security and Retirement - Elmwood Park, Illinois
On the downside, Social Security will likely be a far less dependable income source 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 former employer. More and more, retired people will have to rely on their savings to pay for the costs of living and medical health insurance.
With individuals living for a longer time and needing additional money to do so, retirement planning is a vital activity even for those people who are half way to the common retirement age of sixty-five. It can be a daunting task to plan for a couple of decades into the future, particularly with bills, housing costs and home loans to pay right now, but procrastinating will not make it any easier.
Putting even just a little bit of cash into a savings account that serves as a retirement savings plan can pay off later on. The interest you get on money in a savings account will allow your preliminary investments to grow to something sustainable. A savings account will give you a place where you can build up capital earning a little interest rate until there's enough to invest in a trusted security that will yield you more like a municipal bond.
Another good approach that can certainly and gradually build a nest egg is to invest in long-term bonds. Upon maturation of the bond, you will get back your initial investment and also all the interest that collected over the life 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 as safe an investment that you can ever make.
401K and IRA - Elmwood Park, Illinois
Nevertheless, the best approach when it comes to retirement planning is to put cash in a 401K plan at work or in an IRA opened with an investment house. For the people for whom a 401K isn't 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 every year.
For more information, please feel free to contact GC Financial Advisors Ltd. at any time and we will be glad to help you! We provide 401K and IRA rollover and review services for individuals in the Elmwood Park, Illinois area.
