Retirement Planning Company – Island Lake, Illinois
For anyone in "Generation X" - described as folks born between the mid-1960s and the early 1980s - retirement planning seems like something your parents or other "old people" would do. But you know 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's still a ways off, but people in their 30s and 40s have to begin focusing their investment planning on retirement and making certain they've got the kind of retirement they are working so hard to have. Below are great tips on preparing for retirement:
Retirement life in the future will be different than the retirement right now. It will be better in some ways, and worse somewhat. But, the retirement planning for today's workforce needs to 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 over 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 period of time right now than a generation or two back.
Social Security and Retiring - Island Lake, Illinois
On the down side, Social Security will probably 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 employer. More and more, retired persons will need to depend on their savings to cover the costs of living and health insurance.
With people living for a longer time and needing extra money to do so, retirement planning is a vital activity even for those who are half way to the standard retirement age of sixty-five. It can be an intimidating task to plan for a couple of decades into the future, particularly with bills, housing costs and home loans to pay today, but procrastinating won't make it any easier.
Putting even just a small amount of money now into a savings account which serves as a retirement savings plan can pay off later on. The interest you get on money in a savings account will allow your preliminary investments to grow to something sustainable. A savings account will provide a place where you can pile up capital earning a little interest rate until there is enough to invest in a reliable security that will yield you more like a municipal bond.
Another good approach that could certainly and gradually build a nest egg is to invest in long-term bonds. After maturation of the bond, you will get back your initial investment and also all the interest which 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 that you can ever make.
401K and IRA - Island Lake, Illinois
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 put into this account is tax deferred and may be tax-deductible, depending on how much is invested each year.
For more details, please don't hesitate to contact GC Financial Advisors Ltd. at any time and we'll be happy to help you! We offer 401K and IRA rollover and review services for folks in the Island Lake, Illinois area.
