Retirement Planning Company – Hickory Hills
For the people in "Generation X" - described as individuals born between the mid-1960s and also the early 1980s - retirement planning may sound like something your mother and father or other "old people" might do. But guess what? With a lot of "baby boomers" either already in the middle of retirement or viewing it in the near future, "Generation X" will be the next generation of people to reach old age. Sure, it is still a ways off, but people in their 30s and 40s have to begin centering their investment planning on retirement and making sure they have the kind of retirement they are working hard to enjoy. Here are some tips on planning for retirement:
Retirement life in the future will be different than the retirement right now. It'll be much better in some ways, and worse in some ways. But, the retirement planning for today's labor force must be far different than it was in yesteryear.
On the bright side, individuals 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 period of time now than a generation or two ago.
Social Security and Retiring - Hickory Hills
On the down side, Social Security is going to be a far less reliable source of income than it is now. And the odds are slim-and getting slimmer each year-that retirees 20 and 30 years from now will be able to rely on a work pension and enjoy lifetime benefits from their former employer. Increasingly more, retirees will have to depend on their financial savings to pay for the expenses of living and health insurance.
With people living for a longer time and needing additional money to do so, retirement planning is a vital activity even for those people who are halfway to the regular retirement age of sixty-five. It could be a daunting task to plan for a few decades into the future, especially with bills, housing costs and home loans to pay today, but procrastinating will not make it any less difficult.
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 receive 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's enough to invest in a reliable security which will yield you more like a municipal bond.
Another good approach which could certainly and progressively build a nest egg is to put money into long-term bonds. On maturation of the bond, you will get back your initial investment and also all the interest which collected over the life of the bond. This is 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 that you can ever make.
401K and IRA - Hickory Hills
However, 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 the 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 every year.
For more details, please feel free to contact GC Financial Advisors Ltd. at any time and we will be glad to help you! We offer 401K and IRA rollover and review services for individuals in the Hickory Hills area.
