Retirement Planning Services – Lincolnshire, Illinois
For the people in "Generation X" - described 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" might do. But guess what? With lots of "baby boomers" either already in the midst of retirement or observing it in the near future, "Generation X" will be the next generation of folks to reach retirement. Sure, it is still a ways off, but people in their 30s and 40s ought to start centering their investment planning on retirement and making sure they have the kind 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 of today. It will likely be better in some ways, and worse in some ways. However, the retirement planning for today's labor force must be far different than it was in the past.
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 more 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 time of time right now than a generation or two in the past.
Social Security and Retirement - Lincolnshire, Illinois
On the downside, Social Security will probably be a far less reliable income source than it is now. And also 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, retired people will need to depend on their savings to pay for the costs of just living and medical health insurance.
With people living longer and needing extra money to do so, retirement planning is an essential activity even for those who are halfway to the regular retirement age of 65. It could be a daunting task to plan for a couple of decades into the future, particularly with bills, housing costs and home loans to pay right now, but procrastinating will not make it any easier.
Putting even just a little bit of money now into a savings account that serves as a retirement savings plan can pay off later. The interest you get on money in a savings account will allow your initial 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's enough to invest in a trusted security which will yield you more like a municipal bond.
Another solid strategy that can surely and progressively build a nest egg is to put money into long-term bonds. On maturation of the bond, you'll get back your initial investment along with all the interest that collected over the life of the bond. That's a considerable amount of money for a 20- or 30-year bond-money that can provide a great foundation for retirement. And a municipal or government bond is really as safe an investment as you can ever make.
401K and IRA With Retirement - Lincolnshire, Illinois
Nonetheless, the best approach when it comes to retirement planning is to put money in a 401K plan at work or in an IRA opened with an investment house. For those 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 annually.
For more info, please don't hesitate to contact GC Financial Advisors Ltd. at any time and we will be glad to help you! We offer 401K and IRA rollover and review services for folks in the Lincolnshire, Illinois area.
