Retirement Planning – Evanston, IL
For those in "Generation X" - defined as individuals born between the mid-1960s and also the early 1980s - retirement planning sounds like something your mother and father or other "old people" might do. But you know what? With lots of "baby boomers" either already in the middle of retirement or observing it in the near future, "Generation X" will be the next generation of people to reach old age. Sure, it is a ways off, but those in their 30s and 40s have to begin centering their investment planning on retirement and making certain they have the sort of retirement they are working so hard to have. Below are great tips on preparing for retirement:
Retirement life in the future will be different than the retirement right now. It will likely be better in some ways, and worse somewhat. But, the retirement planning for today's workforce needs to be far different than it was in earlier times.
On the bright side, individuals 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 greater than 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 an extended period of time now than a generation or two in the past.
Social Security and Retiring - Evanston, IL
On the downside, Social Security will probably be a far less dependable source of income compared to now. And also 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 previous workplace. Increasingly more, retired people will have to depend on their financial savings to pay for the costs of just living and medical health insurance.
With people living for a longer time and needing more money to do so, retirement planning is an essential activity even for those people who are halfway to the standard retirement age of sixty-five. It can be a daunting task to plan for a few decades into the future, especially with bills, housing costs and mortgages to pay today, but procrastinating won't make it any less complicated.
Putting even just a little bit of cash into a savings account that functions as a retirement savings plan can pay off in the future. 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 is enough to invest in a reliable security which will yield you more like a municipal bond.
Another solid approach that could certainly and steadily build a nest egg is to put money into long-term bonds. Upon maturation of the bond, you'll get back your initial investment along with all the interest that collected over the lifetime of the bond. That's 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 as safe an investment that you can ever make.
401K and IRA - Evanston, IL
However, the best approach when it comes to retirement planning is to put funds in a 401K plan at your workplace or in an IRA opened with an investment house. For those for whom a 401K is not a retirement planning choice, 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 every year.
For more details, please don't hesitate to contact GC Financial Advisors Ltd. at any time and we will be happy to help you! We offer 401K and IRA rollover and review services for individuals in the Evanston, IL area.
