Retirement Planning Company – Hinsdale
For those 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 you know what? With lots of "baby boomers" either already in the midst of retirement or looking at it in the near future, "Generation X" is the next generation of individuals to reach old age. Sure, it's still a ways off, but people in their 30s and 40s must begin centering their investment planning on retirement and making certain they've got the sort of retirement they are working hard to enjoy. Here are some tips on preparing 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 somewhat. But, the retirement planning for today's labor force 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 over the average life span in 1990 and more than 4 years more than the average life span in 1980. Therefore investment planning for retirement has to account for a longer time of time now than a generation or two ago.
Social Security and Retirement - Hinsdale
On the downside, Social Security will probably be a far less dependable income source compared to now. And the likelihood is 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 previous workplace. Increasingly more, retired people will need to depend on their financial savings to pay for the costs of living and health insurance.
With folks living for a longer time and needing additional money to do so, retirement planning is a vital activity even for those who are half way to the common retirement age of 65. It can be a daunting task to plan for a few decades into the future, especially with bills, rents and home loans to pay right now, but procrastinating won't make it any easier.
Putting even just a small amount of money now into a savings account which functions as a retirement savings plan can pay off in the future. The interest you receive on money in a savings account will allow your initial investments to grow to something sustainable. A savings account will supply a place where you can acquire capital earning a little interest rate until there's enough to invest in a trusted security which will yield you more like a municipal bond.
Another good approach that can certainly 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 as well as 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 as safe an investment as you can ever make.
401K and IRA - Hinsdale
However, the best approach when it comes to retirement planning is 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 in this account is tax deferred and might be tax-deductible, depending on how much is invested every year.
For more info, please feel free to contact GC Financial Advisors Ltd. at any time and we will be glad to help you! We provide 401K and IRA rollover and review services for individuals in the Hinsdale area.
