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Retirement Planning – Mount Prospect, IL

For the people in "Generation X" - defined as folks born between the mid-1960s and the early 1980s - retirement planning may sound like something your parents or other "old people" would do. But you know what? With lots of "baby boomers" either already in the midst of retirement or observing it on the horizon, "Generation X" is the next generation of people to reach old age. Sure, it's still a ways off, but those in their 30s and 40s really need to begin focusing their investment planning on retirement and making certain they've got the kind of retirement they are working hard to enjoy. Here are some tips on planning for retirement:

Retirement life in the foreseeable future will be different than the retirement of today. It will be far better in some ways, and worse somewhat. But, the retirement planning for today's workforce needs to be far different than it was in the past.

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 greater than the average life span in 1990 and more than four years more than the average life span in 1980. Therefore investment planning for retirement has to account for an extended period of time now than a generation or two ago.

Social Security and Retirement - Mount Prospect, IL

On the down side, Social Security is going to be a far less reliable source of income than it is now. And the likelihood is slim-and getting slimmer each 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 workplace. More and more, retired people will have to depend on their financial savings to pay for the costs of just living and health insurance.

With folks living longer and needing more cash to do so, retirement planning is an essential activity even for those people who are halfway to the regular retirement age of 65. It could be a daunting task to plan for a few 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 small amount of money now into a savings account which works as a retirement savings plan can pay off later. The interest you receive 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 that may surely and steadily build a nest egg is to invest in long-term bonds. After maturation of the bond, you will get back your initial investment as well as all the interest which collected over the lifetime of the bond. This is a tremendous amount of money for a 20- or 30-year bond-money that may provide a good foundation for retirement. And a municipal or government bond is really as safe an investment as you can ever make.

401K and IRA With Retirement - Mount Prospect, IL

Nevertheless, 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 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 information, 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 individuals in the Mount Prospect, IL area.

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