Retirement Planning Company – Glendale Heights
For the people in "Generation X" - defined as individuals born between the mid-1960s and the early 1980s - retirement planning seems like something your parents or other "old people" might do. But guess what? With lots of "baby boomers" either already in the middle of retirement or observing it on the horizon, "Generation X" will be the next generation of folks to reach retirement. Sure, it's still a ways off, but those in their 30s and 40s ought to start centering their investment planning on retirement and making sure they've got the sort of retirement they are working so hard to enjoy. Below are great tips on preparing for retirement:
Retirement life in the future will be different than the retirement in the present day. It will likely be better in some ways, and worse somewhat. But, the retirement planning for today's workforce must be far different than it was in days gone by.
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 over the average life span in 1990 and more than four 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 in the past.
Social Security and Retiring - Glendale Heights
On the downside, Social Security is going to be a far less dependable source of income 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 former workplace. More and more, retired persons will need to rely on their savings to cover the costs of just living and health insurance.
With people living longer and needing extra 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 could be an intimidating task to plan for a few decades into the future, particularly with bills, rents and home loans to pay today, but procrastinating will not make it any easier.
Placing even just a little bit of money now into a savings account which functions as a retirement savings plan can pay off in the future. The interest you get on money in a savings account will allow your preliminary investments to grow to something sustainable. A savings account will offer a place where you can build 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 surely and steadily build a nest egg is to invest in long-term bonds. Upon maturation of the bond, you will get back your initial investment as well as all the interest which collected over the lifetime 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 as safe an investment as you can ever make.
401K and IRA - Glendale Heights
Nonetheless, the best approach when it comes to retirement planning is to put cash in a 401K plan at your workplace or in an IRA opened with an investment house. For people 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 each year.
For more details, please do not 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 folks in the Glendale Heights area.
