Retirement Planning – Island Lake, Illinois
For the people in "Generation X" - defined as individuals born between the mid-1960s and also the early 1980s - retirement planning may sound like something your mother and father or other "old people" might do. But you know what? With many "baby boomers" either already in the middle of retirement or viewing it on the horizon, "Generation X" stands out as the next generation of men and women to reach old age. Sure, it's still a ways off, but those in their 30s and 40s need to start focusing their investment planning on retirement and making sure they've got the type of retirement they are working 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'll be better in some ways, and worse somewhat. But, the retirement planning for today's labor force must be far different than it was in the past.
On the bright side, individuals 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 four years more than the average life span in 1980. Therefore investment planning for retirement has to account for an extended period of time right now than a generation or two ago.
Social Security and Retiring - Island Lake, Illinois
On the downside, Social Security will likely be a far less trustworthy income source than it is now. And 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 employer. Increasingly more, retirees will need to depend on their financial savings to pay for the costs of just living and medical health insurance.
With folks living longer and needing additional money to do so, retirement planning is an essential activity even for those who are half way to the standard retirement age of sixty-five. It may be a daunting task to plan for a few decades into the future, especially with bills, housing costs and mortgages to pay today, but procrastinating won't make it any less complicated.
Placing even just a little bit of cash into a savings account that serves 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 offer a place where you can accumulate capital earning a small interest rate until there is enough to invest in a reliable security that will yield you more like a municipal bond.
Another solid strategy which could surely and progressively build a nest egg is to put money into 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 considerable amount of money for a 20- or 30-year bond-money which could provide a great foundation for retirement. And a municipal or government bond is as safe an investment as you can ever make.
401K and IRA - Island Lake, Illinois
Nonetheless, 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 isn't a retirement planning choice, an IRA is the next best thing. Money put into 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 individuals in the Island Lake, Illinois area.
