Retirement Planning Services – Libertyville, IL
For the people in "Generation X" - defined as folks 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 guess what? With many "baby boomers" either already in the middle of retirement or observing it on the horizon, "Generation X" stands out as the next generation of individuals to reach retirement. Sure, it is a ways off, but people in their 30s and 40s have to start focusing their investment planning on retirement and making certain they have the kind 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 in the present day. It'll be much better in some ways, and worse somewhat. However, the retirement planning for today's labor force needs to be far different than it was in the past.
On the bright side, individuals 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 four years more than the average life span in 1980. Therefore investment planning for retirement has to account for an extended period of time right now than a generation or two back.
Social Security and Retiring - Libertyville, IL
On the downside, Social Security will likely be a far less trustworthy source of income 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 workplace. More and more, retired persons will need to depend on their financial savings to pay for the costs of just living and health insurance.
With individuals living for a longer time and needing more money to do so, retirement planning is an essential activity even for those who are half way to the common retirement age of sixty-five. It may be a daunting task to plan for a couple of decades into the future, especially with bills, rents and mortgages to pay right now, but procrastinating will not make it any less complicated.
Placing even just a small amount of cash into a savings account which functions 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 offer a place where you can pile up 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 solid approach that may surely and gradually build a nest egg is to invest in long-term bonds. Upon maturation of the bond, you'll get back your initial investment and also all the interest which collected over the lifetime of the bond. That's a tremendous amount of money for a 20- or 30-year bond-money that may provide a great foundation for retirement. And a municipal or government bond is as safe an investment as you can ever make.
401K and IRA - Libertyville, IL
Nevertheless, the best approach when it comes to retirement planning would be to put funds in a 401K plan at work or in an IRA opened with an investment house. For those for whom a 401K is not a retirement planning choice, an IRA is the next best thing. Money put into this account is tax deferred and may be tax-deductible, depending on how much is invested each year.
For more details, please do not hesitate to contact GC Financial Advisors Ltd. at any time and we'll be glad to help you! We offer 401K and IRA rollover and review services for folks in the Libertyville, IL area.
