Retirement Planning Company – Evanston, Illinois
For those in "Generation X" - described as individuals born between the mid-1960s and the early 1980s - retirement planning sounds like something your mother and father or other "old people" might do. But guess what? With lots of "baby boomers" either already in the middle of retirement or viewing it on the horizon, "Generation X" is the next generation of individuals to reach old age. Sure, it is a ways off, but those in their 30s and 40s have to begin focusing their investment planning on retirement and ensuring they've got the kind of retirement they are working so 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 in some ways. But, the retirement planning for today's labor force needs to be far different than it was in earlier times.
On the bright side, folks are living longer than ever. As of a few years 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 ago.
Social Security and Retiring - Evanston, Illinois
On the downside, Social Security will likely be a far less dependable source of income than it is now. And the likelihood is slim-and getting slimmer every 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 people will have to rely on their savings to pay for the costs of just living and health insurance.
With people 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 sixty-five. It may be an intimidating task to plan for a few decades into the future, especially with bills, rents and home loans to pay right now, but procrastinating will not make it any less complicated.
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 get on money in a savings account will allow your preliminary investments to grow to something sustainable. A savings account will supply a place where you can pile 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 solid approach that could certainly and gradually build a nest egg is to put money into long-term bonds. On maturation of the bond, you'll get back your initial investment along with all the interest which collected over the life of the bond. This is a considerable 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 - Evanston, 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 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 don't hesitate to contact GC Financial Advisors Ltd. at any time and we will be glad to help you! We offer 401K and IRA rollover and review services for individuals in the Evanston, Illinois area.
