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Retirement Planning – Fox Valley, Illinois

For those in "Generation X" - defined 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 you know what? With lots of "baby boomers" either already in the midst of retirement or observing it in the near future, "Generation X" will be the next generation of individuals to reach old age. Sure, it is a ways off, but people in their 30s and 40s will need to begin focusing their investment planning on retirement and making sure they've got the sort of retirement they are working hard to have. Here are some tips on planning for retirement:

Retirement life in the foreseeable future will be different than the retirement right now. It'll be better in some ways, and worse somewhat. However, the retirement planning for today's labor force must be far different than it was in yesteryear.

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 more 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 a longer time of time right now than a generation or two back.

Social Security and Retiring - Fox Valley, Illinois

On the downside, Social Security is going to be a far less reliable income source compared to now. And the odds are slim-and getting slimmer each year-that retirees 20 and 30 years from right now will be able to rely on a work pension and enjoy lifetime benefits from their previous employer. More and more, retired persons will have to depend on their savings to pay for the costs of just living and health insurance.

With folks living longer 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 may be a daunting task to plan for a few decades into the future, especially with bills, rents and mortgages to pay today, but procrastinating will not make it any less complicated.

Placing even just a little bit of money now into a savings account that works as a retirement savings plan can pay off later. The interest you receive 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 build up 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 solid approach that can certainly and gradually build a nest egg is to invest in long-term bonds. On maturation of the bond, you will get back your initial investment along with all the interest that collected over the life of the bond. That's a significant 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 really as safe an investment as you can ever make.

401K and IRA - Fox Valley, Illinois

Nevertheless, the best approach when it comes to retirement planning would be to put cash 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 put into this account is tax deferred and might be tax-deductible, depending on how much is invested each year.

For more details, 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 Fox Valley, Illinois area.

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