Retirement Planning Company – Eola, Illinois
For anyone in "Generation X" - defined as individuals born between the mid-1960s and the early 1980s - retirement planning may sound like something your parents or other "old people" would do. But you know what? With a lot of "baby boomers" either already in the midst of retirement or viewing it in the near future, "Generation X" is definitely the next generation of people to reach old age. Sure, it's still a ways off, but those in their 30s and 40s have to start focusing their investment planning on retirement and ensuring they've got the sort of retirement they are working hard to have. Below are great 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 in some ways. But, the retirement planning for today's labor force 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 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 ago.
Social Security and Retiring - Eola, Illinois
On the down side, Social Security will likely be a far less trustworthy income source 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 employer. More and more, retirees will have to depend on their savings to pay for the costs of just living and health insurance.
With individuals 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 65. It could be an intimidating 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 less difficult.
Putting even just a small amount of money now 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 pile up capital earning a small interest rate until there is enough to invest in a trusted security that will yield you more like a municipal bond.
Another good approach that can certainly and progressively build a nest egg is to invest in long-term bonds. On maturation of the bond, you'll get back your initial investment as well as all the interest that collected over the lifetime of the bond. This is a tremendous 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 as you can ever make.
401K and IRA - Eola, Illinois
Nonetheless, the best approach when it comes to retirement planning would be to put funds in a 401K plan at work or in an IRA opened with an investment house. For those for whom a 401K is not a retirement planning option, 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 every year.
For more information, please don't hesitate to contact GC Financial Advisors Ltd. at any time and we'll be glad to help you! We provide 401K and IRA rollover and review services for individuals in the Eola, Illinois area.
