Retirement Planning Company – Medinah, Illinois
For those in "Generation X" - described 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 midst of retirement or viewing it in the near future, "Generation X" will be the next generation of individuals to reach retirement. Sure, it's still a ways off, but people in their 30s and 40s have to start centering their investment planning on retirement and making certain they've got the sort of retirement they are working so hard to have. Below are great tips on preparing for retirement:
Retirement life in the future will be different than the retirement of today. It'll be far 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, 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 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 Retirement - Medinah, Illinois
On the downside, Social Security is going to be a far less trustworthy income source compared to now. And also the likelihood is slim-and getting slimmer every 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, retirees will have to depend on their savings to pay for the expenses of just living and health insurance.
With people living for a longer time and needing additional money to do so, retirement planning is a vital activity even for those who are halfway to the common retirement age of 65. It could be an intimidating task to plan for a few decades into the future, especially with bills, housing costs and home loans to pay right now, but procrastinating will not make it any easier.
Placing even just a small amount of money now into a savings account which functions as a retirement savings plan can pay off later. The interest you receive on money in a savings account will allow your initial investments to grow to something sustainable. A savings account will give you a place where you can build up capital earning a small interest rate until there's enough to invest in a trusted security which will yield you more like a municipal bond.
Another good strategy that can 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 which collected over the lifetime of the bond. This is a tremendous amount of money for a 20- or 30-year bond-money that can provide a great foundation for retirement. And a municipal or government bond is really as safe an investment as you can ever make.
401K and IRA - Medinah, 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 those 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 might be tax-deductible, depending on how much is invested every year.
For more details, please feel free 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 Medinah, Illinois area.
