Retirement Planning – Medinah, IL
For those in "Generation X" - defined as people born between the mid-1960s and also the early 1980s - retirement planning seems like something your mother and father or other "old people" might do. But you know what? With many "baby boomers" either already in the middle of retirement or viewing it in the near future, "Generation X" is the next generation of folks to reach retirement. Sure, it's still a ways off, but people in their 30s and 40s ought to start focusing their investment planning on retirement and making certain they have the sort of retirement they are working so hard to enjoy. Below are great tips on preparing for retirement:
Retirement life in the future will be different than the retirement right now. It will likely be far better in some ways, and worse somewhat. However, the retirement planning for today's workforce needs to be far different than it was in yesteryear.
On the bright side, people 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 over 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 a longer period of time now than a generation or two in the past.
Social Security and Retirement - Medinah, IL
On the down side, Social Security will probably be a far less dependable source of income compared to now. And the odds are 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 employer. Increasingly more, retirees will need to depend on their financial savings to cover the expenses of living and medical health insurance.
With folks living longer and needing extra money to do so, retirement planning is an essential activity even for those who are halfway to the common retirement age of sixty-five. It can be a daunting task to plan for a couple of decades into the future, especially with bills, housing costs and home loans to pay today, but procrastinating won't make it any easier.
Putting even just a little bit of cash into a savings account that functions as a retirement savings plan can pay off in the future. The interest you get 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 accumulate capital earning a small interest rate until there is enough to invest in a trusted security that will yield you more like a municipal bond.
Another solid approach that can surely and gradually build a nest egg is to put money into long-term bonds. On maturation of the bond, you will get back your initial investment along with all the interest that collected over the lifetime of the bond. That's a significant 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 that you can ever make.
401K and IRA - Medinah, IL
Nonetheless, the best approach when it comes to retirement planning would be to put funds in a 401K plan at work or in an IRA opened with an investment house. For the 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 might 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 individuals in the Medinah, IL area.
