Retirement Planning – Lake Zurich, Illinois
For anyone in "Generation X" - defined as individuals born between the mid-1960s and also the early 1980s - retirement planning may sound like something your mother and father or other "old people" would do. But you know what? With many "baby boomers" either already in the middle of retirement or viewing 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 should begin centering their investment planning on retirement and ensuring they have the kind of retirement they are working so hard to enjoy. Below are great tips on planning for retirement:
Retirement life in the foreseeable future will be different than the retirement right now. It will likely 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 days gone by.
On the bright side, people 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 over 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 right now than a generation or two back.
Social Security and Retiring - Lake Zurich, Illinois
On the down side, Social Security will probably be a far less dependable 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. Increasingly more, retirees will have to depend on their financial savings to pay for the costs of just living and medical health insurance.
With folks living longer and needing extra money to do so, retirement planning is an essential activity even for those people who are halfway to the common retirement age of sixty-five. It can be an intimidating task to plan for a couple of decades into the future, especially with bills, rents and home loans to pay today, but procrastinating will not make it any less difficult.
Placing even just a small amount of money now into a savings account that 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 acquire capital earning a small interest rate until there's enough to invest in a reliable security that will yield you more like a municipal bond.
Another good approach that may surely and gradually build a nest egg is to put money into long-term bonds. After 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 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 Zurich, Illinois
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 option, 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 details, please feel free to contact GC Financial Advisors Ltd. at any time and we will be happy to help you! We offer 401K and IRA rollover and review services for individuals in the Lake Zurich, Illinois area.
