Retirement Planning Services – Hoffman Estates, IL
For those in "Generation X" - defined as people born between the mid-1960s and also the early 1980s - retirement planning sounds like something your mother and father or other "old people" would do. But guess what? With a lot of "baby boomers" either already in the midst of retirement or looking at it on the horizon, "Generation X" is the next generation of men and women to reach old age. Sure, it's still a ways off, but those in their 30s and 40s ought to begin centering their investment planning on retirement and making sure they've got the sort of retirement they are working so hard to have. Here are some tips on preparing for retirement:
Retirement life in the future will be different than the retirement of today. It will likely be much better in some ways, and worse in some ways. But, the retirement planning for today's workforce must be far different than it was in the past.
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. Therefore investment planning for retirement has to account for a longer time of time now than a generation or two in the past.
Social Security and Retirement - Hoffman Estates, IL
On the downside, Social Security will probably be a far less dependable income source than it is now. And also the likelihood is slim-and getting slimmer every 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, retired people will need to rely on their financial savings to cover the costs of just living and health insurance.
With people living for a longer time and needing more money to do so, retirement planning is an essential activity even for those who are halfway to the common retirement age of sixty-five. It can be an intimidating 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 easier.
Putting 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 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 is enough to invest in a trusted security that will yield you more like a municipal bond.
Another solid approach that may certainly and gradually build a nest egg is to put money into long-term bonds. Upon maturation of the bond, you'll get back your initial investment and also all the interest that collected over the life of the bond. That's a tremendous amount of money for a 20- or 30-year bond-money that may provide a great foundation for retirement. And a municipal or government bond is really as safe an investment as you can ever make.
401K and IRA - Hoffman Estates, IL
Nevertheless, the best approach when it comes to retirement planning is to put money in a 401K plan at your workplace or in an IRA opened with an investment house. For people for whom a 401K isn't a retirement planning option, 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 annually.
For more information, please don't 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 Hoffman Estates, IL area.
