Retirement Planning Services – Midlothian
For the people in "Generation X" - defined as folks born between the mid-1960s and also the early 1980s - retirement planning may sound like something your mother and father or other "old people" would do. But you know what? With many "baby boomers" either already in the midst of retirement or looking at it in the near future, "Generation X" stands out as the next generation of folks to reach retirement. Sure, it's still a ways off, but people in their 30s and 40s really need to start centering their investment planning on retirement and making sure they've got the sort of retirement they are working so hard to enjoy. Here are some tips on planning for retirement:
Retirement life in the future will be different than the retirement right now. It will likely be better in some ways, and worse in some ways. But, the retirement planning for today's workforce needs to be far different than it was in earlier times.
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. Therefore investment planning for retirement has to account for a longer time of time right now than a generation or two back.
Social Security and Retirement - Midlothian
On the downside, Social Security will likely be a far less trustworthy source of income compared to now. And 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 previous employer. More and more, retirees will have to rely on their financial savings to pay for the costs of living and medical health insurance.
With people living longer and needing additional money to do so, retirement planning is an essential activity even for those people who are halfway to the regular retirement age of 65. It can 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 won't make it any easier.
Placing even just a little bit of money now into a savings account that works as a retirement savings plan can pay off later on. 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 build up capital earning a little interest rate until there is enough to invest in a reliable security that will yield you more like a municipal bond.
Another solid approach that can surely and steadily build a nest egg is to invest in long-term bonds. Upon 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 significant amount of money for a 20- or 30-year bond-money that can provide a nice foundation for retirement. And a municipal or government bond is as safe an investment as you can ever make.
401K and IRA - Midlothian
Nevertheless, the best approach when it comes to retirement planning is to put money in a 401K plan at your workplace 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 placed in this account is tax deferred and might be tax-deductible, depending on how much is invested every year.
For more details, please don't hesitate to contact GC Financial Advisors Ltd. at any time and we will be happy to help you! We offer 401K and IRA rollover and review services for individuals in the Midlothian area.
