Retirement Planning Company – Hinsdale, Illinois
For the people in "Generation X" - defined as people 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 lots of "baby boomers" either already in the midst of retirement or viewing it in the near future, "Generation X" is the next generation of folks to reach retirement. Sure, it is still a ways off, but those in their 30s and 40s have to start focusing their investment planning on retirement and making sure they have the sort of retirement they are working hard to enjoy. Here are some tips on preparing for retirement:
Retirement life in the foreseeable future will be different than the retirement of today. 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 greater 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 in the past.
Social Security and Retirement - Hinsdale, Illinois
On the down side, Social Security will probably be a far less reliable source of income than it is now. And also 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 former workplace. Increasingly more, retired persons will need to depend on their financial savings to pay for the expenses of just living and health insurance.
With people living longer and needing extra money to do so, retirement planning is a vital activity even for those who are half way to the standard retirement age of 65. It may be an intimidating task to plan for a few decades into the future, particularly with bills, rents and mortgages to pay today, but procrastinating won't make it any less complicated.
Putting even just a small amount of cash into a savings account which 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 initial investments to grow to something sustainable. A savings account will give you a place where you can accumulate 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 good strategy that can surely and gradually build a nest egg is to put money into long-term bonds. Upon maturation of the bond, you will get back your initial investment and also all the interest which collected over the lifetime of the bond. This is a significant amount of money for a 20- or 30-year bond-money that can 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 With Retirement - Hinsdale, Illinois
Nonetheless, the best approach when it comes to retirement planning would be to put money 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 put in this account is tax deferred and may be tax-deductible, depending on how much is invested each year.
For more details, please feel free 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 folks in the Hinsdale, Illinois area.
