Retirement Planning Company – Lake Bluff, IL
For the people in "Generation X" - described as individuals born between the mid-1960s and also the early 1980s - retirement planning seems like something your mother and father or other "old people" might do. But guess what? With many "baby boomers" either already in the midst of retirement or looking at it in the near future, "Generation X" is the next generation of individuals to reach retirement. Sure, it's still a ways off, but those in their 30s and 40s ought to begin focusing their investment planning on retirement and ensuring they have the kind 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 of today. It'll be better in some ways, and worse in some ways. However, the retirement planning for today's labor force needs to be far different than it was in yesteryear.
On the bright side, individuals are living longer than ever. As of a few years 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 time of time now than a generation or two in the past.
Social Security and Retiring - Lake Bluff, IL
On the downside, Social Security is going to be a far less dependable income source compared to now. And the likelihood is 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 previous workplace. More and more, retired persons will need to rely on their financial savings to pay for the expenses of just living and medical health insurance.
With individuals living longer 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 65. It could be a daunting task to plan for a couple of decades into the future, particularly with bills, housing costs 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 serves as a retirement savings plan can pay off in the future. The interest you receive 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 accumulate capital earning a small interest rate until there is enough to invest in a trusted security which will yield you more like a municipal bond.
Another good strategy which could certainly and progressively build a nest egg is to invest in long-term bonds. On 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 tremendous amount of money for a 20- or 30-year bond-money which could 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 - Lake Bluff, IL
Nevertheless, the best approach when it comes to retirement planning is to put funds 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 put into this account is tax deferred and may be tax-deductible, depending on how much is invested annually.
For more details, please don't hesitate to contact GC Financial Advisors Ltd. at any time and we'll be glad to help you! We offer 401K and IRA rollover and review services for individuals in the Lake Bluff, IL area.
