Retirement Planning Services – Naperville, IL
For anyone in "Generation X" - defined as folks born between the mid-1960s and the early 1980s - retirement planning sounds like something your parents or other "old people" might do. But guess what? With a lot of "baby boomers" either already in the middle of retirement or looking at it on the horizon, "Generation X" will be the next generation of men and women to reach retirement. Sure, it is a ways off, but people in their 30s and 40s have to begin centering their investment planning on retirement and making sure they've got the kind of retirement they are working so hard to enjoy. Here are some tips on preparing for retirement:
Retirement life in the foreseeable future will be different than the retirement right now. It will be much better in some ways, and worse in some ways. 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 four years more than the average life span in 1980. Therefore investment planning for retirement has to account for a longer period of time now than a generation or two in the past.
Social Security and Retirement - Naperville, IL
On the downside, Social Security is going to be a far less dependable income source than it is now. And also 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 need to rely on their financial savings to cover 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 people who are halfway to the standard retirement age of 65. It could be an intimidating task to plan for a couple of decades into the future, particularly with bills, rents and mortgages to pay today, but procrastinating won't make it any less difficult.
Placing even just a small amount of cash into a savings account that works as a retirement savings plan can pay off in the future. The interest you get on money in a savings account will allow your initial investments to grow to something sustainable. A savings account will offer a place where you can build up 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 solid approach that could certainly and progressively build a nest egg is to invest in long-term bonds. Upon maturation of the bond, you will get back your initial investment as well as all the interest that collected over the life of the bond. That's 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 really as safe an investment that you can ever make.
401K and IRA With Retirement - Naperville, IL
Nonetheless, the best approach when it comes to retirement planning is to put money 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 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 annually.
For more info, please feel free to contact GC Financial Advisors Ltd. at any time and we'll be glad to help you! We offer 401K and IRA rollover and review services for folks in the Naperville, IL area.
