Retirement Planning Company – Homer Glen, IL
For those in "Generation X" - defined as individuals born between the mid-1960s and the early 1980s - retirement planning sounds like something your parents or other "old people" would do. But guess what? With lots of "baby boomers" either already in the middle of retirement or looking at it on the horizon, "Generation X" stands out as the next generation of individuals to reach retirement. Sure, it is still a ways off, but people in their 30s and 40s have to begin focusing their investment planning on retirement and ensuring they've got the type of retirement they are working hard to enjoy. Here are some tips on planning for retirement:
Retirement life in the foreseeable future will be different than the retirement in the present day. It will likely be far better in some ways, and worse in some ways. However, the retirement planning for today's workforce must be far different than it was in yesteryear.
On the bright side, people are living longer than ever. As of a short while 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 now than a generation or two in the past.
Social Security and Retirement - Homer Glen, IL
On the downside, Social Security will probably be a far less trustworthy source of income than it is 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. More and more, retired persons will need to rely on their financial savings to cover 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 people who are half way to the common retirement age of sixty-five. It could be an intimidating task to plan for a few decades into the future, particularly with bills, housing costs and mortgages to pay today, but procrastinating will not make it any less difficult.
Placing even just a little bit of money now into a savings account that functions as a retirement savings plan can pay off later. The interest you receive 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 pile 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 that can certainly and steadily build a nest egg is to invest in long-term bonds. On maturation of the bond, you will get back your initial investment as well as all the interest that collected over the lifetime of the bond. This is a tremendous amount of money for a 20- or 30-year bond-money that can 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 With Retirement - Homer Glen, IL
However, the best approach when it comes to retirement planning would be to put money in a 401K plan at your workplace or in an IRA opened with an investment house. For those 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 every year.
For more info, please feel free to contact GC Financial Advisors Ltd. at any time and we'll be glad to help you! We offer 401K and IRA rollover and review services for folks in the Homer Glen, IL area.
