Retirement Planning Services – Lake Bluff, Illinois
For those in "Generation X" - described as folks 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 many "baby boomers" either already in the middle of retirement or observing it in the near future, "Generation X" will be the next generation of men and women to reach old age. Sure, it's still a ways off, but those in their 30s and 40s really need to begin focusing their investment planning on retirement and making sure they have the sort of retirement they are working so hard to have. Below are great tips on planning for retirement:
Retirement life in the foreseeable future will be different than the retirement right now. It will be far better in some ways, and worse somewhat. However, the retirement planning for today's labor force must be far different than it was in the past.
On the bright side, folks 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. So 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 Retirement - Lake Bluff, Illinois
On the downside, Social Security will probably be a far less reliable source of income than it is now. And also 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 previous employer. More and more, retired persons will need to rely on their financial savings to cover the expenses of living and health insurance.
With people living longer and needing additional money to do so, retirement planning is an essential activity even for those who are half way to the regular retirement age of 65. It may be a daunting task to plan for a few decades into the future, especially with bills, housing costs and mortgages to pay right now, but procrastinating won't make it any less difficult.
Putting even just a small amount of cash into a savings account which works as a retirement savings plan can pay off in the future. 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 little interest rate until there's enough to invest in a trusted security that will yield you more like a municipal bond.
Another solid strategy that can certainly 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 and also 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 that can provide a nice foundation for retirement. And a municipal or government bond is really as safe an investment that you can ever make.
401K and IRA - Lake Bluff, Illinois
Nonetheless, 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 those for whom a 401K isn't a retirement planning choice, an IRA is the next best thing. Money put into this account is tax deferred and might be tax-deductible, depending on how much is invested each year.
For more info, please don't hesitate to contact GC Financial Advisors Ltd. at any time and we'll be happy to help you! We offer 401K and IRA rollover and review services for folks in the Lake Bluff, Illinois area.
