Retirement Planning Services – Golf, Illinois
For anyone in "Generation X" - defined as folks born between the mid-1960s and the early 1980s - retirement planning sounds 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 viewing it in the near future, "Generation X" is the next generation of people to reach old age. Sure, it's still a ways off, but people in their 30s and 40s will need to start focusing their investment planning on retirement and making sure they have the type of retirement they are working hard to enjoy. Here are some tips on preparing for retirement:
Retirement life in the future will be different than the retirement right now. It will likely be far 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, folks 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. So investment planning for retirement has to account for a longer time of time right now than a generation or two ago.
Social Security and Retiring - Golf, Illinois
On the downside, Social Security will likely be a far less dependable 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, retirees will have to rely on their savings to pay for the expenses of just living and medical health insurance.
With people living longer and needing extra money to do so, retirement planning is a vital activity even for those who are halfway to the common retirement age of 65. It may be an intimidating task to plan for a few decades into the future, particularly with bills, rents and mortgages to pay right now, but procrastinating will not make it any less complicated.
Putting even just a little bit of money now into a savings account which serves as a retirement savings plan can pay off later on. The interest you get on money in a savings account will allow your preliminary 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 which will yield you more like a municipal bond.
Another solid strategy which could certainly and progressively build a nest egg is to invest in long-term bonds. Upon maturation of the bond, you'll get back your initial investment as well as all the interest which collected over the life of the bond. That's a tremendous 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 as you can ever make.
401K and IRA With Retirement - Golf, Illinois
Nonetheless, the best approach when it comes to retirement planning would be to put money in a 401K plan at your workplace 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 placed in this account is tax deferred and may be tax-deductible, depending on how much is invested every year.
For more details, please feel free to contact GC Financial Advisors Ltd. at any time and we will be happy to help you! We provide 401K and IRA rollover and review services for individuals in the Golf, Illinois area.
