Retirement Planning – Lake Bluff, Illinois
For the people in "Generation X" - described as people born between the mid-1960s and the early 1980s - retirement planning may sound like something your mother and father or other "old people" would do. But guess what? With lots of "baby boomers" either already in the middle of retirement or viewing it on the horizon, "Generation X" is the next generation of folks to reach retirement. Sure, it is a ways off, but people in their 30s and 40s need to begin centering their investment planning on retirement and making sure they've got the kind of retirement they are working so 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 will be much better in some ways, and worse somewhat. But, the retirement planning for today's labor force must be far different than it was in days gone by.
On the bright side, individuals 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 an extended period of time now than a generation or two in the past.
Social Security and Retiring - Lake Bluff, Illinois
On the down side, Social Security is going to be a far less dependable source of income than it is now. And also the likelihood is slim-and getting slimmer each year-that retirees 20 and 30 years from now will be able to rely on a work pension and enjoy lifetime benefits from their previous workplace. Increasingly more, retired persons will have to rely on their financial savings to cover the expenses of living and health insurance.
With folks living for a longer time and needing more cash to do so, retirement planning is a vital activity even for those people who are half way to the regular retirement age of 65. It can be an intimidating task to plan for a few decades into the future, particularly with bills, rents and mortgages to pay today, but procrastinating won't make it any easier.
Placing even just a small amount of money now into a savings account that functions as a retirement savings plan can pay off later on. The interest you receive 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 acquire 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. 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. 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 as you can ever make.
401K and IRA With Retirement - Lake Bluff, Illinois
However, the best approach when it comes to retirement planning would be to put funds in a 401K plan at work or in an IRA opened with an investment house. For the people for whom a 401K is not a retirement planning choice, an IRA is the next best thing. Money put in this account is tax deferred and might be tax-deductible, depending on how much is invested each year.
For more information, please don't hesitate to contact GC Financial Advisors Ltd. at any time and we'll be glad to help you! We provide 401K and IRA rollover and review services for individuals in the Lake Bluff, Illinois area.
