Retirement Planning Services – Midlothian, IL
For anyone 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 you know what? With many "baby boomers" either already in the middle of retirement or looking at it in the near future, "Generation X" stands out as the next generation of people to reach retirement. Sure, it is a ways off, but people in their 30s and 40s should start centering their investment planning on retirement and making certain they've got the kind of retirement they are working hard to have. Here are some tips on planning for retirement:
Retirement life in the foreseeable future will be different than the retirement of today. It will likely be much 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 days gone by.
On the bright side, people are living longer than ever. As of not too long 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 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 Retiring - Midlothian, IL
On the down side, Social Security is going to be a far less reliable income source compared to now. And also the likelihood is 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 employer. Increasingly more, retirees will have to depend on their financial savings to pay for the expenses of just living and health insurance.
With folks living for a longer time and needing extra money 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 mortgages to pay right now, but procrastinating won't make it any less difficult.
Placing even just a small amount of money now into a savings account that serves as a retirement savings plan can pay off later on. The interest you get 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 small interest rate until there is enough to invest in a reliable security that will yield you more like a municipal bond.
Another solid strategy that may surely and gradually build a nest egg is to invest in long-term bonds. Upon maturation of the bond, you will get back your initial investment along with all the interest that collected over the lifetime 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 - Midlothian, IL
Nonetheless, 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 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 may be tax-deductible, depending on how much is invested annually.
For more information, 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, IL area.
