Retirement Planning – Harwood Heights, IL
For the people in "Generation X" - defined as individuals born between the mid-1960s and also the early 1980s - retirement planning seems like something your mother and father or other "old people" might do. But you know what? With a lot of "baby boomers" either already in the midst of retirement or looking at it on the horizon, "Generation X" is definitely the next generation of folks to reach retirement. Sure, it is still a ways off, but those in their 30s and 40s should begin centering their investment planning on retirement and making sure they have the type of retirement they are working so hard to have. Here are some tips on planning for retirement:
Retirement life in the future will be different than the retirement of today. It'll be much better in some ways, and worse in some ways. But, the retirement planning for today's workforce needs to be far different than it was in days gone by.
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 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 an extended period of time right now than a generation or two in the past.
Social Security and Retiring - Harwood Heights, IL
On the down side, Social Security will probably be a far less dependable source of income than it is now. And 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 employer. Increasingly more, retirees will need to rely on their savings to cover the expenses 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 people who are halfway to the standard retirement age of sixty-five. It may be an intimidating task to plan for a couple of decades into the future, especially with bills, rents and mortgages 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 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 offer a place where you can build up capital earning a little interest rate until there is enough to invest in a trusted security that will yield you more like a municipal bond.
Another solid approach that may surely and gradually build a nest egg is to invest in long-term bonds. On maturation of the bond, you will get back your initial investment along with 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 may provide a nice foundation for retirement. And a municipal or government bond is really as safe an investment as you can ever make.
401K and IRA - Harwood Heights, IL
Nevertheless, the best approach when it comes to retirement planning would be to put cash 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 placed in this account is tax deferred and might be tax-deductible, depending on how much is invested annually.
For more details, 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 Harwood Heights, IL area.