Retirement Planning Services – Hometown
For the people in "Generation X" - defined as folks born between the mid-1960s and also the early 1980s - retirement planning sounds like something your mother and father or other "old people" might do. But guess what? With lots of "baby boomers" either already in the middle of retirement or looking at it in the near future, "Generation X" will be the next generation of folks to reach retirement. Sure, it is a ways off, but people in their 30s and 40s must start focusing their investment planning on retirement and ensuring they've got the kind of retirement they are working hard to enjoy. Below are great tips on planning 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 in some ways. However, the retirement planning for today's workforce must be far different than it was in yesteryear.
On the bright side, individuals 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 four 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 ago.
Social Security and Retirement - Hometown
On the down side, Social Security will likely be a far less trustworthy income source compared to 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 workplace. More and more, retirees will need to depend on their savings to cover the expenses of just living and medical health insurance.
With individuals living longer and needing extra money to do so, retirement planning is a vital activity even for those who are halfway to the regular retirement age of sixty-five. It could be a daunting task to plan for a few decades into the future, particularly 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 money now into a savings account that functions as a retirement savings plan can pay off later on. The interest you receive on money in a savings account will allow your initial investments to grow to something sustainable. A savings account will offer a place where you can acquire 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 approach which could 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 along with 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 which could provide a nice foundation for retirement. And a municipal or government bond is really as safe an investment as you can ever make.
401K and IRA With Retirement - Hometown
However, the best approach when it comes to retirement planning would be 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 is not a retirement planning choice, an IRA is the next best thing. Money placed in this account is tax deferred and might be tax-deductible, depending on how much is invested every year.
For more information, please do not hesitate to contact GC Financial Advisors Ltd. at any time and we will be happy to help you! We offer 401K and IRA rollover and review services for individuals in the Hometown area.
