Retirement Planning Services – Mchenry Fox River Grove, Illinois
For those in "Generation X" - described as folks born between the mid-1960s and also the early 1980s - retirement planning sounds like something your parents or other "old people" would do. But you know what? With a lot of "baby boomers" either already in the middle of retirement or observing it on the horizon, "Generation X" will be the next generation of folks to reach old age. Sure, it's still a ways off, but people in their 30s and 40s will need to start centering their investment planning on retirement and making certain they've got the type of retirement they are working so hard to have. Here are some tips on planning for retirement:
Retirement life in the future will be different than the retirement right now. It'll be much better in some ways, and worse in some ways. However, 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 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 an extended period of time right now than a generation or two ago.
Social Security and Retiring - Mchenry Fox River Grove, Illinois
On the down side, Social Security will likely be a far less trustworthy income source compared to now. And the odds are 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 previous workplace. More and more, retirees will have to depend on their financial savings to pay for the expenses of living and medical health insurance.
With folks living longer and needing more cash to do so, retirement planning is a vital activity even for those people who are halfway to the common retirement age of 65. It may be an intimidating task to plan for a few decades into the future, especially with bills, rents and mortgages to pay today, but procrastinating won't make it any less complicated.
Putting even just a small amount of money now into a savings account which serves as a retirement savings plan can pay off later. The interest you receive 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 is enough to invest in a trusted security that will yield you more like a municipal bond.
Another good strategy which could surely and gradually build a nest egg is to put money into long-term bonds. Upon maturation of the bond, you will get back your initial investment along with all the interest which collected over the lifetime of the bond. That's a tremendous amount of money for a 20- or 30-year bond-money which could provide a nice foundation for retirement. And a municipal or government bond is as safe an investment that you can ever make.
401K and IRA With Retirement - Mchenry Fox River Grove, Illinois
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 into this account is tax deferred and may be tax-deductible, depending on how much is invested each year.
For more details, please feel free 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 individuals in the Mchenry Fox River Grove, Illinois area.
