Retirement Planning Services – Maywood, IL
For anyone in "Generation X" - defined as folks born between the mid-1960s and the early 1980s - retirement planning seems like something your parents 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 men and women to reach old age. Sure, it is still a ways off, but people in their 30s and 40s must begin centering their investment planning on retirement and ensuring they have the kind of retirement they are working hard to enjoy. Here are some tips on planning for retirement:
Retirement life in the future will be different than the retirement in the present day. It will likely be far better in some ways, and worse somewhat. But, the retirement planning for today's workforce needs to be far different than it was in yesteryear.
On the bright side, individuals 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 greater 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 right now than a generation or two back.
Social Security and Retiring - Maywood, IL
On the down side, Social Security is going to be a far less reliable source of income compared to 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 financial savings to cover the expenses of living and health insurance.
With folks living for a longer time and needing more cash to do so, retirement planning is a vital activity even for those who are halfway to the standard retirement age of sixty-five. It could be a daunting task to plan for a couple of decades into the future, especially with bills, housing costs and mortgages to pay today, but procrastinating will not make it any easier.
Putting even just a little bit of money now into a savings account that works 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 supply 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. After maturation of the bond, you'll get back your initial investment and also all the interest that collected over the lifetime of the bond. This is 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 With Retirement - Maywood, IL
However, the best approach when it comes to retirement planning would be to put cash in a 401K plan at your workplace or in an IRA opened with an investment house. For the people 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 annually.
For more information, please do not hesitate to contact GC Financial Advisors Ltd. at any time and we'll be happy to help you! We provide 401K and IRA rollover and review services for individuals in the Maywood, IL area.
