Retirement Planning Services – 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 you know what? With lots of "baby boomers" either already in the midst of retirement or looking at it in the near future, "Generation X" will be the next generation of individuals to reach old age. Sure, it is a ways off, but those in their 30s and 40s must start focusing their investment planning on retirement and making sure they've got the kind of retirement they are working so hard to have. Below are great 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 much better in some ways, and worse in some ways. But, the retirement planning for today's workforce needs to be far different than it was in earlier times.
On the bright side, folks 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. So investment planning for retirement has to account for a longer time of time right now than a generation or two back.
Social Security and Retiring - Homewood
On the downside, Social Security will likely be a far less dependable income source 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 costs of living and health insurance.
With people living longer and needing more money to do so, retirement planning is a vital activity even for those people who are half way to the regular retirement age of 65. It could be an intimidating task to plan for a couple of decades into the future, especially with bills, housing costs and home loans to pay right now, but procrastinating will not make it any easier.
Putting even just a small amount of money now into a savings account that works as a retirement savings plan can pay off in the future. The interest you receive on money in a savings account will allow your preliminary investments to grow to something sustainable. A savings account will offer a place where you can acquire capital earning a small interest rate until there's enough to invest in a reliable security that will yield you more like a municipal bond.
Another solid approach that can surely and steadily build a nest egg is to invest in long-term bonds. Upon maturation of the bond, you will get back your initial investment along with 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 can provide a good foundation for retirement. And a municipal or government bond is as safe an investment as you can ever make.
401K and IRA - Homewood
Nevertheless, the best approach when it comes to retirement planning would be to put cash in a 401K plan at work or in an IRA opened with an investment house. For 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 don't hesitate to contact GC Financial Advisors Ltd. at any time and we'll be glad to help you! We provide 401K and IRA rollover and review services for folks in the Homewood area.