Retirement Planning Company – Palos Heights, Illinois
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 men and women to reach retirement. Sure, it is a ways off, but people in their 30s and 40s will need to start focusing their investment planning on retirement and making sure they have the sort of retirement they are working hard to have. Here are some tips on preparing for retirement:
Retirement life in the future will be different than the retirement of today. It will likely be better in some ways, and worse somewhat. However, the retirement planning for today's labor force needs to be far different than it was in earlier times.
On the bright side, individuals 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 a longer period of time right now than a generation or two ago.
Social Security and Retiring - Palos Heights, Illinois
On the downside, Social Security will likely be a far less reliable income source than it is now. And also the likelihood is 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, retirees will need to depend on their savings to cover the expenses of just living and health insurance.
With individuals living for a longer time and needing more cash to do so, retirement planning is a vital activity even for those people who are half way to the standard retirement age of sixty-five. It could be an intimidating task to plan for a few decades into the future, particularly with bills, housing costs and home loans to pay right now, but procrastinating will not make it any less complicated.
Putting even just a little bit of cash into a savings account that functions 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 provide a place where you can pile up capital earning a small interest rate until there's enough to invest in a trusted security that will yield you more like a municipal bond.
Another good approach that can surely and progressively build a nest egg is to invest in long-term bonds. On maturation of the bond, you'll get back your initial investment as well as all the interest that collected over the lifetime of the bond. That's a considerable amount of money for a 20- or 30-year bond-money that can provide a great foundation for retirement. And a municipal or government bond is as safe an investment as you can ever make.
401K and IRA - Palos Heights, Illinois
Nonetheless, the best approach when it comes to retirement planning is to put funds in a 401K plan at work or in an IRA opened with an investment house. For the people 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 may be tax-deductible, depending on how much is invested each year.
For more info, please feel free to contact GC Financial Advisors Ltd. at any time and we will be glad to help you! We offer 401K and IRA rollover and review services for individuals in the Palos Heights, Illinois area.
