Retirement Planning Services – Naperville, Illinois
For those in "Generation X" - described as individuals born between the mid-1960s and the early 1980s - retirement planning seems like something your parents or other "old people" would do. But you know what? With a lot of "baby boomers" either already in the middle of retirement or looking at it on the horizon, "Generation X" is definitely the next generation of folks to reach retirement. Sure, it is still a ways off, but those in their 30s and 40s must start focusing 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 foreseeable future will be different than the retirement right now. It will likely be far better in some ways, and worse somewhat. However, the retirement planning for today's labor force must be far different than it was in the past.
On the bright side, people 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 four years more than the average life span in 1980. Therefore 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 - Naperville, Illinois
On the down side, Social Security will likely be a far less reliable source of income compared to now. And also 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 former workplace. Increasingly more, retired persons will need to depend on their financial savings to pay for the costs of living and health insurance.
With folks living longer and needing more money to do so, retirement planning is an essential activity even for those 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, rents and home loans to pay today, but procrastinating won't make it any less complicated.
Placing even just a small amount of money now into a savings account which works as a retirement savings plan can pay off in the future. The interest you receive on money in a savings account will allow your preliminary investments to grow to something sustainable. A savings account will give you a place where you can acquire capital earning a little interest rate until there's enough to invest in a trusted security that will yield you more like a municipal bond.
Another solid approach that could surely and progressively build a nest egg is to invest in long-term bonds. After maturation of the bond, you'll get back your initial investment as well as all the interest which collected over the life of the bond. This is a considerable amount of money for a 20- or 30-year bond-money that 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 - Naperville, Illinois
Nonetheless, the best approach when it comes to retirement planning would be to put cash 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 into this account is tax deferred and might be tax-deductible, depending on how much is invested every year.
For more information, please feel free to contact GC Financial Advisors Ltd. at any time and we will be happy to help you! We provide 401K and IRA rollover and review services for folks in the Naperville, Illinois area.
