Retirement Planning – Elmwood Park
For those in "Generation X" - defined as individuals born between the mid-1960s and the early 1980s - retirement planning seems like something your parents or other "old people" would do. But guess what? With many "baby boomers" either already in the middle of retirement or looking at it in the near future, "Generation X" will be the next generation of folks to reach old age. Sure, it is still a ways off, but those in their 30s and 40s need to begin focusing their investment planning on retirement and making sure they've got the sort 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 in the present day. It will likely be better in some ways, and worse somewhat. But, the retirement planning for today's labor force needs to 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 more 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 period of time now than a generation or two in the past.
Social Security and Retirement - Elmwood Park
On the downside, Social Security will likely be a far less reliable income source compared to now. And the likelihood is 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. More and more, retired persons will need to rely on their savings to pay for the costs of just living and health insurance.
With individuals living for a longer time and needing additional money to do so, retirement planning is an essential activity even for those people who are half way to the common retirement age of sixty-five. It may be an intimidating task to plan for a couple of decades into the future, especially with bills, rents and home loans to pay today, but procrastinating won't make it any easier.
Placing even just a small amount of money now 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 supply a place where you can pile up capital earning a small 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 could surely and gradually build a nest egg is to invest in long-term bonds. After 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 considerable amount of money for a 20- or 30-year bond-money that could provide a great foundation for retirement. And a municipal or government bond is really as safe an investment that you can ever make.
401K and IRA - Elmwood Park
However, 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 people for whom a 401K isn't a retirement planning choice, an IRA is the next best thing. Money put into 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 glad to help you! We provide 401K and IRA rollover and review services for individuals in the Elmwood Park area.
