Retirement Planning – Lake Forest, Illinois
For those in "Generation X" - defined as people born between the mid-1960s and the early 1980s - retirement planning seems like something your mother and father or other "old people" might do. But you know what? With many "baby boomers" either already in the midst of retirement or viewing it in the near future, "Generation X" is definitely the next generation of folks to reach retirement. Sure, it is still a ways off, but those in their 30s and 40s ought to begin centering their investment planning on retirement and ensuring they've got the sort of retirement they are working hard to enjoy. Here are some tips on preparing for retirement:
Retirement life in the future will be different than the retirement right now. It will be better in some ways, and worse in some ways. But, the retirement planning for today's labor force needs to be far different than it was in earlier times.
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 more 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 period of time right now than a generation or two back.
Social Security and Retiring - Lake Forest, Illinois
On the downside, Social Security will likely be a far less dependable income source than it is 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 people will have to rely on their savings to pay for the expenses of living and health insurance.
With folks living longer and needing more money to do so, retirement planning is an essential activity even for those people who are half way to the common retirement age of sixty-five. It may be an intimidating task to plan for a couple of decades into the future, particularly with bills, rents and mortgages to pay today, but procrastinating will not make it any easier.
Putting even just a small amount of money now into a savings account that serves 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 give you a place where you can acquire capital earning a little 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 surely and progressively build a nest egg is to invest in long-term bonds. On maturation of the bond, you'll get back your initial investment and also all the interest that collected over the lifetime 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 - Lake Forest, Illinois
Nonetheless, the best approach when it comes to retirement planning would be to put cash 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 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 happy to help you! We provide 401K and IRA rollover and review services for individuals in the Lake Forest, Illinois area.
