Retirement Planning – Homewood, IL
For anyone in "Generation X" - defined as individuals born between the mid-1960s and also the early 1980s - retirement planning sounds like something your parents or other "old people" would do. But guess what? With many "baby boomers" either already in the middle of retirement or looking at it on the horizon, "Generation X" is the next generation of people to reach old age. Sure, it is a ways off, but those in their 30s and 40s really need to begin focusing their investment planning on retirement and making certain they have the type of retirement they are working so 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 will likely be far better in some ways, and worse somewhat. However, the retirement planning for today's workforce needs to be far different than it was in days gone by.
On the bright side, folks 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 4 years more than the average life span in 1980. So investment planning for retirement has to account for a longer period of time right now than a generation or two ago.
Social Security and Retiring - Homewood, IL
On the downside, Social Security is going to be a far less reliable source of income than it is now. And also the odds are 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 former workplace. Increasingly more, retirees will have to depend on their financial savings to pay for the expenses of living and medical health insurance.
With folks living longer and needing extra 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 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 less complicated.
Putting even just a small amount of money now into a savings account that works 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 give you a place where you can acquire 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 strategy that can certainly and steadily build a nest egg is to put money into long-term bonds. After 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. That's a considerable amount of money for a 20- or 30-year bond-money that can provide a great foundation for retirement. And a municipal or government bond is really as safe an investment that you can ever make.
401K and IRA - Homewood, IL
Nonetheless, the best approach when it comes to retirement planning is to put funds 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 may be tax-deductible, depending on how much is invested each 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 Homewood, IL area.
