Retirement Planning Company – Markham
For those in "Generation X" - described as folks born between the mid-1960s and also the early 1980s - retirement planning sounds like something your mother and father or other "old people" would do. But guess what? With many "baby boomers" either already in the midst of retirement or observing it on the horizon, "Generation X" will be the next generation of folks to reach old age. Sure, it is a ways off, but people in their 30s and 40s really need to begin focusing their investment planning on retirement and ensuring they have the kind of retirement they are working so hard to have. Below are great tips on preparing for retirement:
Retirement life in the future will be different than the retirement in the present day. It'll be far better in some ways, and worse in some ways. But, the retirement planning for today's labor force needs to be far different than it was in earlier times.
On the bright side, people are living longer than ever. As of a short while 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 a longer time of time now than a generation or two in the past.
Social Security and Retiring - Markham
On the down side, Social Security will probably be a far less dependable 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 workplace. Increasingly more, retired people will need to rely on their financial savings to pay for the expenses of living and medical health insurance.
With folks living for a longer time and needing extra money to do so, retirement planning is an essential activity even for those people who are half way to the standard retirement age of 65. It can be a daunting task to plan for a few decades into the future, especially with bills, housing costs and home loans to pay today, but procrastinating will not make it any less complicated.
Putting even just a small amount of cash into a savings account that functions as a retirement savings plan can pay off in the future. The interest you receive 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 accumulate capital earning a small interest rate until there is enough to invest in a reliable security that will yield you more like a municipal bond.
Another good approach that can certainly and gradually build a nest egg is to invest in long-term bonds. After maturation of the bond, you will get back your initial investment and also 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 nice foundation for retirement. And a municipal or government bond is really as safe an investment that you can ever make.
401K and IRA - Markham
Nonetheless, 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 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 annually.
For more info, please do not hesitate to contact GC Financial Advisors Ltd. at any time and we will be glad to help you! We provide 401K and IRA rollover and review services for individuals in the Markham area.
