Retirement Planning Services – Morton Grove, Illinois
For those in "Generation X" - defined as people born between the mid-1960s and also the early 1980s - retirement planning seems like something your parents or other "old people" might do. But you know what? With lots of "baby boomers" either already in the midst of retirement or viewing it on the horizon, "Generation X" is the next generation of folks to reach old age. Sure, it is a ways off, but those in their 30s and 40s will need to start centering their investment planning on retirement and making sure they've got the kind of retirement they are working 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 will likely be much better in some ways, and worse somewhat. But, the retirement planning for today's workforce must be far different than it was in yesteryear.
On the bright side, folks 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 four years more than the average life span in 1980. So investment planning for retirement has to account for an extended period of time right now than a generation or two ago.
Social Security and Retirement - Morton Grove, Illinois
On the down side, Social Security will likely be a far less dependable source of income than it is now. And the odds are 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 workplace. More and more, retired persons will have to rely on their savings to pay for the costs of living and medical health insurance.
With folks 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 regular retirement age of 65. It may be a daunting task to plan for a few decades into the future, particularly with bills, housing costs and mortgages to pay right now, but procrastinating will not make it any less difficult.
Putting even just a little bit of money now into a savings account that functions 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 offer a place where you can acquire capital earning a small interest rate until there is enough to invest in a reliable security which will yield you more like a municipal bond.
Another good approach which could surely and progressively build a nest egg is to put money into long-term bonds. Upon maturation of the bond, you will get back your initial investment and also all the interest that collected over the life of the bond. This is a tremendous amount of money for a 20- or 30-year bond-money which could provide a nice foundation for retirement. And a municipal or government bond is as safe an investment that you can ever make.
401K and IRA With Retirement - Morton Grove, Illinois
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 those for whom a 401K is not a retirement planning choice, an IRA is the next best thing. Money placed in this account is tax deferred and may be tax-deductible, depending on how much is invested each 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 Morton Grove, Illinois area.
