Retirement Planning Company – Mchenry Cary
For those in "Generation X" - defined as individuals 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 guess what? With many "baby boomers" either already in the middle of retirement or viewing it in the near future, "Generation X" stands out as the next generation of individuals to reach retirement. Sure, it is still a ways off, but those in their 30s and 40s need to begin focusing their investment planning on retirement and making sure they have the sort of retirement they are working so hard to have. Below are great tips on preparing for retirement:
Retirement life in the foreseeable future will be different than the retirement of today. It will likely be better in some ways, and worse somewhat. But, the retirement planning for today's labor force needs to be far different than it was in earlier times.
On the bright side, folks 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 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 an extended period of time right now than a generation or two in the past.
Social Security and Retiring - Mchenry Cary
On the downside, Social Security will probably be a far less dependable source of income than it is now. And the likelihood is slim-and getting slimmer every 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 workplace. Increasingly more, retirees will have to depend on their financial savings to cover the expenses of just living and 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 regular retirement age of sixty-five. It can be an intimidating task to plan for a couple of decades into the future, especially with bills, rents and mortgages to pay today, but procrastinating won't make it any easier.
Placing even just a little bit of cash into a savings account which serves as a retirement savings plan can pay off in the future. The interest you receive on money in a savings account will allow your initial investments to grow to something sustainable. A savings account will provide a place where you can pile up 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 good approach which could surely and progressively build a nest egg is to put money into long-term bonds. After maturation of the bond, you will get back your initial investment along with all the interest which collected over the lifetime of the bond. This is a significant 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 as you can ever make.
401K and IRA With Retirement - Mchenry Cary
Nonetheless, 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 people for whom a 401K is not 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 info, please don't hesitate to contact GC Financial Advisors Ltd. at any time and we'll be glad to help you! We provide 401K and IRA rollover and review services for individuals in the Mchenry Cary area.
