Retirement Planning Company – Palatine
For the people 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" would do. But you know what? With many "baby boomers" either already in the midst of retirement or looking at it in the near future, "Generation X" will be the next generation of individuals to reach retirement. Sure, it's still a ways off, but those in their 30s and 40s ought to start focusing their investment planning on retirement and ensuring they've got the kind of retirement they are working so hard to have. Here are some tips on preparing for retirement:
Retirement life in the future will be different than the retirement right now. It'll be much better in some ways, and worse in some ways. But, the retirement planning for today's workforce must be far different than it was in the past.
On the bright side, individuals are living longer than ever. As of a short while 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 a longer time of time right now than a generation or two in the past.
Social Security and Retiring - Palatine
On the down side, Social Security will likely be a far less trustworthy income source than it is now. And the odds are slim-and getting slimmer each 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. More and more, retired persons will need to depend on their financial savings to cover the expenses of just living and medical health insurance.
With folks living longer and needing additional money to do so, retirement planning is a vital activity even for those who are half way to the common retirement age of 65. It can be an intimidating task to plan for a few decades into the future, especially with bills, rents and mortgages to pay right now, but procrastinating will not make it any less complicated.
Putting even just a little bit of money now into a savings account that 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 initial investments to grow to something sustainable. A savings account will offer a place where you can pile up capital earning a little interest rate until there's enough to invest in a trusted security which will yield you more like a municipal bond.
Another good approach that can surely and steadily build a nest egg is to invest in long-term bonds. On maturation of the bond, you will get back your initial investment and also all the interest that collected over the life of the bond. That's a significant amount of money for a 20- or 30-year bond-money that can provide a good foundation for retirement. And a municipal or government bond is really as safe an investment that you can ever make.
401K and IRA - Palatine
Nevertheless, the best approach when it comes to retirement planning is to put funds in a 401K plan at your workplace or in an IRA opened with an investment house. For people for whom a 401K isn't 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 each year.
For more information, please do not hesitate 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 individuals in the Palatine area.
