Retirement Planning Company – Forest Park, IL
For anyone in "Generation X" - defined as people born between the mid-1960s and the early 1980s - retirement planning seems like something your mother and father or other "old people" might do. But you know what? With a lot of "baby boomers" either already in the midst of retirement or observing it in the near future, "Generation X" is definitely the next generation of men and women to reach old age. Sure, it's still a ways off, but people in their 30s and 40s will need to begin centering their investment planning on retirement and ensuring they've got the type 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 likely be much better in some ways, and worse in some ways. However, the retirement planning for today's workforce must be far different than it was in earlier times.
On the bright side, people 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 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 Retirement - Forest Park, IL
On the down side, Social Security is going to be a far less reliable source of income than it is 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 workplace. Increasingly more, retirees will need to depend on their financial savings to cover the expenses of just living and health insurance.
With people living longer and needing additional money to do so, retirement planning is a vital activity even for those people who are halfway to the common retirement age of sixty-five. It can 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 money now into a savings account which works as a retirement savings plan can pay off in the future. The interest you get on money in a savings account will allow your initial investments to grow to something sustainable. A savings account will provide a place where you can acquire capital earning a small interest rate until there's enough to invest in a reliable security that will yield you more like a municipal bond.
Another good strategy that could surely and steadily build a nest egg is to put money into long-term bonds. On maturation of the bond, you will get back your initial investment along with all the interest which collected over the life of the bond. This is a tremendous 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 - Forest Park, IL
However, the best approach when it comes to retirement planning is to put money in a 401K plan at your workplace or in an IRA opened with an investment house. For the people 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 info, please do not 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 folks in the Forest Park, IL area.
