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Retirement Planning – Lombard, IL

For anyone in "Generation X" - described as folks born between the mid-1960s and the early 1980s - retirement planning may sound like something your mother and father or other "old people" might do. But you know what? With many "baby boomers" either already in the midst of retirement or observing it on the horizon, "Generation X" stands out as the next generation of men and women to reach retirement. Sure, it's still a ways off, but people in their 30s and 40s should begin focusing their investment planning on retirement and making sure they have the type of retirement they are working so hard to have. Here are some tips on planning for retirement:

Retirement life in the foreseeable future will be different than the retirement in the present day. It will be much better in some ways, and worse in some ways. However, the retirement planning for today's workforce must be far different than it was in days gone by.

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 over the average life span in 1990 and more than 4 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 back.

Social Security and Retiring - Lombard, IL

On the down side, Social Security is going to be a far less dependable source of income than it is now. And also the likelihood is slim-and getting slimmer each year-that retirees 20 and 30 years from now will be able to rely on a work pension and enjoy lifetime benefits from their previous workplace. More and more, retired persons will need to rely on their financial savings to cover the expenses of just living and health insurance.

With people living for a longer time and needing more cash to do so, retirement planning is an essential activity even for those who are halfway to the regular retirement age of sixty-five. It can be an intimidating task to plan for a couple of decades into the future, particularly with bills, housing costs and home loans to pay today, but procrastinating will not make it any less complicated.

Placing even just a little bit of cash 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 offer a place where you can acquire 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 strategy that may certainly and gradually build a nest egg is to put money into 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 considerable 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 really as safe an investment that you can ever make.

401K and IRA - Lombard, IL

However, the best approach when it comes to retirement planning is to put cash 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 in this account is tax deferred and may 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 folks in the Lombard, IL area.

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