Retirement Planning Services – Kenilworth, Illinois
For those in "Generation X" - defined as people born between the mid-1960s and also the early 1980s - retirement planning may sound like something your parents or other "old people" might do. But you know what? With a lot of "baby boomers" either already in the middle of retirement or looking at it on the horizon, "Generation X" stands out as the next generation of folks to reach retirement. Sure, it is still a ways off, but people in their 30s and 40s will need to begin centering their investment planning on retirement and making certain they have the type of retirement they are working hard to have. Below are great tips on preparing for retirement:
Retirement life in the foreseeable future will be different than the retirement right now. It will likely be far better in some ways, and worse in some ways. However, the retirement planning for today's workforce must be far different than it was in days gone by.
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 more than 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 time of time right now than a generation or two ago.
Social Security and Retiring - Kenilworth, Illinois
On the down side, Social Security is going to be a far less trustworthy income source compared to now. And the likelihood is 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 employer. More and more, retirees will need to depend on their savings to cover the expenses of living and medical health insurance.
With folks living for a longer time and needing extra money to do so, retirement planning is an essential activity even for those people who are halfway to the standard retirement age of 65. It may be a daunting task to plan for a few decades into the future, especially with bills, rents and mortgages to pay today, but procrastinating won't make it any less difficult.
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 get on money in a savings account will allow your initial investments to grow to something sustainable. A savings account will supply a place where you can pile up 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 good strategy that may surely and progressively build a nest egg is to put money into long-term bonds. Upon maturation of the bond, you'll get back your initial investment as well as all the interest which collected over the lifetime of the bond. That's a tremendous amount of money for a 20- or 30-year bond-money that may 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 - Kenilworth, Illinois
However, the best approach when it comes to retirement planning is to put money in a 401K plan at your workplace or in an IRA opened with an investment house. For the people for whom a 401K isn't a retirement planning option, 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 every year.
For more details, please do not hesitate to contact GC Financial Advisors Ltd. at any time and we'll be happy to help you! We provide 401K and IRA rollover and review services for folks in the Kenilworth, Illinois area.
