Retirement Planning Company – Elmwood Park
For those in "Generation X" - described as folks born between the mid-1960s and the early 1980s - retirement planning may sound like something your parents or other "old people" might do. But you know what? With many "baby boomers" either already in the midst of retirement or observing it on the horizon, "Generation X" is definitely the next generation of folks to reach retirement. Sure, it is a ways off, but those in their 30s and 40s have to begin centering their investment planning on retirement and making sure they've got the sort of retirement they are working hard to enjoy. Below are great tips on planning for retirement:
Retirement life in the foreseeable future will be different than the retirement right now. It will be much better in some ways, and worse somewhat. However, the retirement planning for today's workforce needs to be far different than it was in yesteryear.
On the bright side, individuals 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 greater 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 back.
Social Security and Retirement - Elmwood Park
On the down side, Social Security is going to be a far less dependable income source compared to 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 former employer. Increasingly more, retirees will have to rely on their financial savings to cover the expenses of just living and medical health insurance.
With people living for a longer time and needing extra money to do so, retirement planning is an essential activity even for those people who are halfway to the regular retirement age of sixty-five. It can be an intimidating task to plan for a few decades into the future, particularly with bills, rents and home loans to pay today, but procrastinating will not make it any easier.
Placing even just a small amount of cash into a savings account which works as a retirement savings plan can pay off later. The interest you receive 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 little interest rate until there's enough to invest in a reliable security that will yield you more like a municipal bond.
Another solid approach that could certainly and progressively build a nest egg is to put money into long-term bonds. Upon maturation of the bond, you will get back your initial investment and also 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 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 - Elmwood Park
Nonetheless, 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 those for whom a 401K isn't a retirement planning choice, 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 each year.
For more details, please feel free to contact GC Financial Advisors Ltd. at any time and we'll be happy to help you! We offer 401K and IRA rollover and review services for individuals in the Elmwood Park area.
