Retirement Planning Services – Lemont, IL
For those in "Generation X" - described as people born between the mid-1960s and also the early 1980s - retirement planning sounds like something your mother and father or other "old people" might do. But you know what? With many "baby boomers" either already in the middle of retirement or looking at it in the near future, "Generation X" is the next generation of men and women to reach retirement. Sure, it's still a ways off, but those in their 30s and 40s need to begin centering their investment planning on retirement and making sure 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 foreseeable future will be different than the retirement right now. It will likely be better in some ways, and worse in some ways. However, the retirement planning for today's workforce needs to be far different than it was in yesteryear.
On the bright side, folks 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 greater than the average life span in 1990 and more than four years more than the average life span in 1980. So investment planning for retirement has to account for a longer period of time now than a generation or two ago.
Social Security and Retirement - Lemont, IL
On the down side, Social Security is going to be a far less reliable source of income 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 former employer. More and more, retirees will have to depend on their financial savings to cover the expenses of just living and 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 standard retirement age of 65. It may be an intimidating task to plan for a couple of decades into the future, particularly with bills, rents and home loans to pay today, but procrastinating won't make it any less complicated.
Putting even just a little bit of money now into a savings account which functions as a retirement savings plan can pay off later. The interest you receive on money in a savings account will allow your initial investments to grow to something sustainable. A savings account will provide a place where you can accumulate capital earning a little interest rate until there's enough to invest in a reliable security which will yield you more like a municipal bond.
Another solid strategy which could surely and gradually 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 lifetime of the bond. This is a significant 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 that you can ever make.
401K and IRA - Lemont, IL
However, the best approach when it comes to retirement planning is to put cash in a 401K plan at your workplace or in an IRA opened with an investment house. For people for whom a 401K isn't 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 info, please do not hesitate 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 folks in the Lemont, IL area.
