Retirement Planning Services – Glenview, Illinois
For anyone in "Generation X" - described as people born between the mid-1960s and the early 1980s - retirement planning may sound like something your parents or other "old people" would do. But guess what? With many "baby boomers" either already in the middle of retirement or observing it in the near future, "Generation X" stands out as the next generation of individuals to reach retirement. Sure, it is a ways off, but those in their 30s and 40s ought to start focusing their investment planning on retirement and making certain they've got the sort 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 in the present day. It will be much better in some ways, and worse somewhat. But, the retirement planning for today's labor force must be far different than it was in the past.
On the bright side, people are living longer than ever. As of not too long 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 four years more than the average life span in 1980. Therefore investment planning for retirement has to account for a longer period of time right now than a generation or two ago.
Social Security and Retirement - Glenview, Illinois
On the downside, Social Security is going to be a far less reliable income source than it is now. And also the likelihood is 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. Increasingly more, retired persons will need to rely on their financial savings to cover the costs of 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 people who are halfway to the common retirement age of 65. It could be a daunting task to plan for a couple of decades into the future, particularly with bills, rents and mortgages to pay today, but procrastinating won't make it any less complicated.
Placing even just a small amount of money now into a savings account which serves as a retirement savings plan can pay off later on. 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 accumulate capital earning a small interest rate until there is enough to invest in a trusted security which will yield you more like a municipal bond.
Another solid approach which could surely and gradually build a nest egg is to invest in long-term bonds. On maturation of the bond, you'll get back your initial investment along with all the interest which collected over the life of the bond. This is a considerable amount of money for a 20- or 30-year bond-money which could 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, Illinois
However, the best approach when it comes to retirement planning is to put funds in a 401K plan at work or in an IRA opened with an investment house. For people for whom a 401K isn't a retirement planning choice, 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 info, please feel free 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 individuals in the Glenview, Illinois area.
