Retirement Planning Services – Joliet, IL
For anyone in "Generation X" - defined as individuals born between the mid-1960s and the early 1980s - retirement planning sounds like something your mother and father or other "old people" would do. But guess what? With a lot of "baby boomers" either already in the middle of retirement or viewing it on the horizon, "Generation X" stands out as the next generation of folks to reach retirement. Sure, it is a ways off, but those in their 30s and 40s should start focusing their investment planning on retirement and making sure they have the sort of retirement they are working hard to have. Below are great tips on planning for retirement:
Retirement life in the foreseeable future will be different than the retirement of today. It'll 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 earlier times.
On the bright side, people 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 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 a longer period of time right now than a generation or two in the past.
Social Security and Retiring - Joliet, IL
On the down side, Social Security is going to be a far less reliable source of income compared to now. And also the odds are slim-and getting slimmer each 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, retired persons will have to rely on their financial savings to pay for the expenses of just living and health insurance.
With people living longer and needing additional money to do so, retirement planning is a vital activity even for those people who are half way to the regular 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 right now, but procrastinating will not make it any easier.
Putting even just a little bit of cash into a savings account that functions 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 supply a place where you can acquire capital earning a small interest rate until there's enough to invest in a reliable security which will yield you more like a municipal bond.
Another good approach which could surely 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 that 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 good foundation for retirement. And a municipal or government bond is really as safe an investment that you can ever make.
401K and IRA With Retirement - Joliet, IL
However, the best approach when it comes to retirement planning would be to put money 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 choice, an IRA is the next best thing. Money placed in this account is tax deferred and may be tax-deductible, depending on how much is invested each year.
For more details, please feel free to contact GC Financial Advisors Ltd. at any time and we will be glad to help you! We offer 401K and IRA rollover and review services for folks in the Joliet, IL area.
