Retirement Planning Services – Hanover Park
For the people in "Generation X" - defined as folks 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 many "baby boomers" either already in the midst of retirement or observing it in the near future, "Generation X" is definitely the next generation of men and women to reach retirement. Sure, it is a ways off, but those in their 30s and 40s ought to begin focusing their investment planning on retirement and ensuring they've got the kind of retirement they are working hard to have. Below are great tips on planning for retirement:
Retirement life in the future will be different than the retirement of today. 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 earlier times.
On the bright side, folks are living longer than ever. As of a short while 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. So investment planning for retirement has to account for a longer time of time right now than a generation or two back.
Social Security and Retirement - Hanover Park
On the downside, Social Security will probably be a far less reliable income source compared to now. And the likelihood is 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 employer. Increasingly more, retired persons will have to depend on their savings to pay for the costs of just living and health insurance.
With individuals living for a longer time and needing extra money to do so, retirement planning is a vital activity even for those who are halfway to the standard retirement age of sixty-five. It may be an intimidating 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 less difficult.
Placing even just a little bit of money now into a savings account that 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 give you a place where you can pile 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 certainly and gradually build a nest egg is to invest in long-term bonds. After maturation of the bond, you'll get back your initial investment and also 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 could provide a good foundation for retirement. And a municipal or government bond is really as safe an investment that you can ever make.
401K and IRA - Hanover Park
However, 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 the people for whom a 401K is not 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 don't hesitate to contact GC Financial Advisors Ltd. at any time and we'll be happy to help you! We provide 401K and IRA rollover and review services for individuals in the Hanover Park area.
