Retirement Planning Company – Hinsdale, IL
For the people in "Generation X" - defined as people born between the mid-1960s and the early 1980s - retirement planning seems like something your mother and father or other "old people" would do. But guess what? With lots of "baby boomers" either already in the midst of retirement or observing it in the near future, "Generation X" is the next generation of people to reach retirement. Sure, it is a ways off, but those in their 30s and 40s have to begin focusing their investment planning on retirement and ensuring they have the kind of retirement they are working 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 far better in some ways, and worse in some ways. However, the retirement planning for today's workforce needs to be far different than it was in days gone by.
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 more 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 an extended period of time right now than a generation or two ago.
Social Security and Retiring - Hinsdale, IL
On the down side, Social Security will likely be a far less trustworthy income source than it is now. And also 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. More and more, retired people will need to depend on their savings to pay for the expenses of living and medical health insurance.
With people living longer and needing additional money to do so, retirement planning is a vital activity even for those people who are halfway to the common retirement age of 65. It could be an intimidating task to plan for a few decades into the future, especially with bills, housing costs and home loans to pay right now, but procrastinating will not make it any less complicated.
Putting even just a small amount of cash into a savings account that functions as a retirement savings plan can pay off later. The interest you get on money in a savings account will allow your initial investments to grow to something sustainable. A savings account will provide a place where you can accumulate 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 good strategy that could surely and steadily build a nest egg is to invest in long-term bonds. On maturation of the bond, you'll get back your initial investment along with all the interest that collected over the lifetime of the bond. That's a tremendous amount of money for a 20- or 30-year bond-money that could provide a nice foundation for retirement. And a municipal or government bond is as safe an investment that you can ever make.
401K and IRA - Hinsdale, IL
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 people for whom a 401K is not a retirement planning choice, 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 annually.
For more details, please do not hesitate to contact GC Financial Advisors Ltd. at any time and we'll be happy to help you! We offer 401K and IRA rollover and review services for folks in the Hinsdale, IL area.
