Retirement Planning – Lansing, IL
For those in "Generation X" - described as people born between the mid-1960s and the early 1980s - retirement planning seems like something your mother and father or other "old people" would do. But you know what? With a lot of "baby boomers" either already in the middle of retirement or viewing it on the horizon, "Generation X" will be the next generation of folks to reach retirement. Sure, it's still a ways off, but people in their 30s and 40s must begin focusing their investment planning on retirement and ensuring they have the kind of retirement they are working hard to have. Here are some tips on planning for retirement:
Retirement life in the future will be different than the retirement in the present day. It will likely be better in some ways, and worse somewhat. But, the retirement planning for today's workforce needs to be far different than it was in the past.
On the bright side, people 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 Retirement - Lansing, IL
On the down side, Social Security will probably be a far less reliable source of income compared to 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 previous workplace. Increasingly more, retirees will need to rely on their financial savings to pay for the costs 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 who are half way to the standard retirement age of 65. It could be an intimidating task to plan for a few decades into the future, especially with bills, housing costs and home loans to pay right now, but procrastinating will not make it any less complicated.
Placing even just a little bit of money now into a savings account which works 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 supply a place where you can build up capital earning a small interest rate until there's enough to invest in a reliable security which will yield you more like a municipal bond.
Another good approach that may certainly and progressively build a nest egg is to put money into long-term bonds. Upon maturation of the bond, you will get back your initial investment and also all the interest which collected over the lifetime of the bond. That's a considerable amount of money for a 20- or 30-year bond-money that may provide a good foundation for retirement. And a municipal or government bond is as safe an investment that you can ever make.
401K and IRA - Lansing, IL
However, 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 the people for whom a 401K is not a retirement planning choice, an IRA is the next best thing. Money placed in this account is tax deferred and may be tax-deductible, depending on how much is invested annually.
For more details, please do not hesitate 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 folks in the Lansing, IL area.
