Retirement Planning – Melrose Park, Illinois
For anyone in "Generation X" - defined as people born between the mid-1960s and also the early 1980s - retirement planning sounds like something your parents or other "old people" might do. But you know what? With a lot of "baby boomers" either already in the midst of retirement or observing it on the horizon, "Generation X" will be the next generation of men and women to reach old age. Sure, it is still a ways off, but people in their 30s and 40s should begin focusing their investment planning on retirement and ensuring they have the kind of retirement they are working hard to enjoy. Below are great tips on preparing for retirement:
Retirement life in the foreseeable future will be different than the retirement right now. It will 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 a short while 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 time of time right now than a generation or two back.
Social Security and Retiring - Melrose Park, Illinois
On the downside, Social Security will likely be a far less dependable income source compared to now. And also the odds are 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. More and more, retirees will need to depend on their financial savings to pay for the costs of living and health insurance.
With people living longer and needing more cash to do so, retirement planning is a vital activity even for those people who are halfway to the regular retirement age of sixty-five. It may be an intimidating task to plan for a few decades into the future, particularly with bills, housing costs and home loans to pay today, but procrastinating won't make it any less complicated.
Placing even just a little bit of money now into a savings account that works as a retirement savings plan can pay off in the future. The interest you get on money in a savings account will allow your preliminary investments to grow to something sustainable. A savings account will offer a place where you can build up 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 may 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 and also all the interest that collected over the life of the bond. This is a considerable amount of money for a 20- or 30-year bond-money that may provide a great foundation for retirement. And a municipal or government bond is as safe an investment that you can ever make.
401K and IRA With Retirement - Melrose Park, Illinois
However, the best approach when it comes to retirement planning is to put funds in a 401K plan at work 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 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 glad to help you! We provide 401K and IRA rollover and review services for folks in the Melrose Park, Illinois area.
