Retirement Planning Company – Homewood
For the people in "Generation X" - defined as individuals born between the mid-1960s and the early 1980s - retirement planning may sound like something your parents or other "old people" would do. But guess what? With a lot of "baby boomers" either already in the middle of retirement or looking at it on the horizon, "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 need to begin centering their investment planning on retirement and making certain they have the type of retirement they are working hard to enjoy. Below are great tips on preparing for retirement:
Retirement life in the foreseeable future will be different than the retirement right now. It'll be far better in some ways, and worse somewhat. However, the retirement planning for today's labor force needs to be far different than it was in earlier times.
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 back.
Social Security and Retirement - Homewood
On the downside, Social Security will likely be a far less dependable source of income compared to 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 workplace. More and more, retired people will have to rely on their financial savings to pay for the costs of living and medical health insurance.
With people living for a longer time and needing more money to do so, retirement planning is a vital activity even for those people who are halfway to the standard retirement age of 65. It may be a daunting task to plan for a couple of decades into the future, especially with bills, housing costs and mortgages to pay today, but procrastinating will not make it any less complicated.
Putting even just a small amount of money now into a savings account that 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 supply a place where you can acquire capital earning a little interest rate until there is enough to invest in a trusted security which will yield you more like a municipal bond.
Another solid strategy that could certainly and gradually build a nest egg is to put money into long-term bonds. On maturation of the bond, you'll get back your initial investment as well as all the interest that collected over the life of the bond. This is a considerable amount of money for a 20- or 30-year bond-money that could provide a nice foundation for retirement. And a municipal or government bond is as safe an investment as you can ever make.
401K and IRA With Retirement - Homewood
However, the best approach when it comes to retirement planning would be to put funds in a 401K plan at your workplace or in an IRA opened with an investment house. For the people for whom a 401K is not a retirement planning option, 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 annually.
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 folks in the Homewood area.
