Retirement Planning Company – Hazel Crest, Illinois
For the people in "Generation X" - defined as folks born between the mid-1960s and also the early 1980s - retirement planning may sound like something your parents or other "old people" might do. But you know what? With many "baby boomers" either already in the middle of retirement or looking at it on the horizon, "Generation X" is the next generation of people to reach old age. Sure, it's still a ways off, but those in their 30s and 40s really need to begin focusing their investment planning on retirement and making certain they have the sort of retirement they are working so hard to enjoy. Below are great tips on preparing for retirement:
Retirement life in the foreseeable future will be different than the retirement in the present day. It will likely be far better in some ways, and worse somewhat. But, the retirement planning for today's workforce needs to be far different than it was in days gone by.
On the bright side, individuals 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 ago.
Social Security and Retirement - Hazel Crest, Illinois
On the downside, Social Security will probably be a far less reliable income source compared to now. And the odds are 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. More and more, retired people will have to depend on their financial savings to cover the expenses of just living and health insurance.
With individuals living longer and needing additional money to do so, retirement planning is an essential activity even for those who are halfway to the standard retirement age of 65. It could be a daunting task to plan for a couple of decades into the future, particularly with bills, housing costs and home loans to pay today, but procrastinating will not make it any less complicated.
Placing even just a small amount of cash into a savings account that serves as a retirement savings plan can pay off later. The interest you receive 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 accumulate capital earning a small interest rate until there's enough to invest in a reliable security that will yield you more like a municipal bond.
Another good approach that may surely and progressively build a nest egg is to put money into long-term bonds. On maturation of the bond, you'll get back your initial investment as well as all the interest that collected over the life 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 as safe an investment as you can ever make.
401K and IRA - Hazel Crest, Illinois
However, the best approach when it comes to retirement planning would be to put cash 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 choice, an IRA is the next best thing. Money put into this account is tax deferred and may be tax-deductible, depending on how much is invested each year.
For more information, 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 Hazel Crest, Illinois area.
