Retirement Planning Services – Itasca, IL
For anyone in "Generation X" - described as individuals born between the mid-1960s and also the early 1980s - retirement planning seems like something your parents or other "old people" might do. But guess what? With lots of "baby boomers" either already in the middle of retirement or observing it on the horizon, "Generation X" will be the next generation of men and women to reach old age. Sure, it is a ways off, but those in their 30s and 40s ought to start centering their investment planning on retirement and making certain they have the sort of retirement they are working hard to have. Here are some tips on preparing for retirement:
Retirement life in the future will be different than the retirement in the present day. 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 yesteryear.
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. Therefore investment planning for retirement has to account for a longer period of time now than a generation or two in the past.
Social Security and Retirement - Itasca, IL
On the down side, Social Security will likely be a far less trustworthy income source compared to now. And the odds are 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 persons will need to rely on their financial savings to cover the expenses of just living and medical health insurance.
With people living longer and needing extra money to do so, retirement planning is a vital activity even for those people who are half way to the standard retirement age of sixty-five. It may be an intimidating task to plan for a few decades into the future, particularly with bills, rents and mortgages to pay right now, but procrastinating will not make it any less complicated.
Placing even just a little bit of money now into a savings account which 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 provide a place where you can acquire capital earning a small interest rate until there is enough to invest in a reliable security which will yield you more like a municipal bond.
Another solid approach which could certainly and gradually build a nest egg is to put money into long-term bonds. Upon maturation of the bond, you will get back your initial investment as well as all the interest which collected over the life of the bond. This is a significant 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 - Itasca, IL
Nonetheless, 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 annually.
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 provide 401K and IRA rollover and review services for folks in the Itasca, IL area.
