Retirement Planning Services – Glenview, IL
For those in "Generation X" - defined as folks born between the mid-1960s and also the early 1980s - retirement planning sounds like something your parents 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 on the horizon, "Generation X" will be the next generation of folks to reach old age. Sure, it is still a ways off, but people in their 30s and 40s ought to start centering their investment planning on retirement and making sure they have the kind of retirement they are working hard to enjoy. Below are great tips on preparing for retirement:
Retirement life in the future will be different than the retirement of today. It'll be 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 the past.
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 greater 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 an extended period of time right now than a generation or two in the past.
Social Security and Retirement - Glenview, IL
On the downside, Social Security is going to be a far less reliable source of income compared to now. And also the odds are slim-and getting slimmer every 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 workplace. More and more, retired persons will need to rely on their financial savings to pay for the costs of just living and medical health insurance.
With individuals living for a longer time 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 65. It may be a daunting 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 easier.
Placing even just a small amount of money now into a savings account that serves 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 build up capital earning a small interest rate until there's enough to invest in a trusted security which will yield you more like a municipal bond.
Another good approach that may surely and steadily build a nest egg is to put money into long-term bonds. After maturation of the bond, you'll get back your initial investment along with all the interest that collected over the lifetime of the bond. This is a considerable amount of money for a 20- or 30-year bond-money that may provide a great foundation for retirement. And a municipal or government bond is as safe an investment that you can ever make.
401K and IRA With Retirement - Glenview, IL
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 into this account is tax deferred and might 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'll be happy to help you! We offer 401K and IRA rollover and review services for folks in the Glenview, IL area.
