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Retirement Planning Services – Mchenry Cary

For the people in "Generation X" - described as individuals born between the mid-1960s and the early 1980s - retirement planning may sound like something your parents or other "old people" would do. But you know what? With lots of "baby boomers" either already in the midst of retirement or looking at it on the horizon, "Generation X" is definitely the next generation of men and women to reach old age. Sure, it is still a ways off, but those in their 30s and 40s need to start centering their investment planning on retirement and making sure they've got the sort of retirement they are working so hard to have. Below are great 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 in some ways. But, the retirement planning for today's labor force must be far different than it was in yesteryear.

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 greater than 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 time of time now than a generation or two back.

Social Security and Retiring - Mchenry Cary

On the down side, Social Security is going to be a far less trustworthy source of income compared to 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 former workplace. Increasingly more, retired people will have to rely on their savings to cover the expenses of living and medical health insurance.

With people living for a longer time and needing more money to do so, retirement planning is a vital activity even for those who are half way to the regular retirement age of 65. It may be a daunting 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 difficult.

Placing even just a little bit of money now into a savings account that serves 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 supply a place where you can build up capital earning a small interest rate until there's enough to invest in a reliable security that will yield you more like a municipal bond.

Another good approach which could surely and gradually build a nest egg is to put money into long-term bonds. Upon maturation of the bond, you'll get back your initial investment as well as 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 which could provide a good foundation for retirement. And a municipal or government bond is as safe an investment that you can ever make.

401K and IRA - Mchenry Cary

Nevertheless, 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 isn't a retirement planning option, 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 do not 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 Mchenry Cary area.

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