Retirement Planning – Mchenry Fox River Grove, IL
For those in "Generation X" - defined as folks born between the mid-1960s and the early 1980s - retirement planning sounds 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 observing it on the horizon, "Generation X" is the next generation of individuals to reach old age. Sure, it's still a ways off, but those in their 30s and 40s should start focusing their investment planning on retirement and making certain they have the sort of retirement they are working 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'll be far better in some ways, and worse in some ways. However, the retirement planning for today's labor force must be far different than it was in the past.
On the bright side, folks 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 more than the average life span in 1990 and more than four 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 ago.
Social Security and Retirement - Mchenry Fox River Grove, IL
On the down side, Social Security is going to be a far less reliable income source than it is 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 workplace. Increasingly more, retirees will need to depend on their financial savings to pay for the expenses of living and health insurance.
With individuals living for a longer time and needing more cash to do so, retirement planning is a vital activity even for those people who are half way to the regular retirement age of 65. It could be a daunting task to plan for a few decades into the future, particularly with bills, rents and home loans to pay today, but procrastinating will not make it any less difficult.
Putting even just a small amount 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 preliminary investments to grow to something sustainable. A savings account will provide a place where you can acquire capital earning a little interest rate until there's enough to invest in a reliable security that will yield you more like a municipal bond.
Another good strategy which could surely and progressively build a nest egg is to put money into long-term bonds. On 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. This is a tremendous amount of money for a 20- or 30-year bond-money which could provide a great foundation for retirement. And a municipal or government bond is as safe an investment as you can ever make.
401K and IRA - Mchenry Fox River Grove, IL
However, the best approach when it comes to retirement planning is to put funds in a 401K plan at your workplace 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 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 happy to help you! We offer 401K and IRA rollover and review services for folks in the Mchenry Fox River Grove, IL area.
