Retirement Planning – Palos Hills, IL
For anyone in "Generation X" - defined as folks born between the mid-1960s and also the early 1980s - retirement planning may sound like something your parents or other "old people" might do. But guess what? With lots of "baby boomers" either already in the midst of retirement or viewing it in the near future, "Generation X" stands out as the next generation of individuals to reach retirement. Sure, it's still a ways off, but those in their 30s and 40s will need to start centering their investment planning on retirement and making sure they've got the type 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 in the present day. It'll be far better in some ways, and worse in some ways. But, the retirement planning for today's labor force must be far different than it was in days gone by.
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 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 time of time right now than a generation or two ago.
Social Security and Retiring - Palos Hills, IL
On the down side, Social Security will likely be a far less reliable 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 workplace. Increasingly more, retired people will need to depend on their savings to cover the costs of living and health insurance.
With individuals living for a longer time and needing more money to do so, retirement planning is an essential activity even for those who are halfway to the common retirement age of sixty-five. It could be an intimidating task to plan for a few decades into the future, especially with bills, housing costs and mortgages to pay right now, but procrastinating will not make it any easier.
Putting even just a small amount of money now into a savings account that functions as a retirement savings plan can pay off later on. The interest you receive on money in a savings account will allow your initial investments to grow to something sustainable. A savings account will supply a place where you can accumulate capital earning a little interest rate until there is enough to invest in a reliable security which will yield you more like a municipal bond.
Another solid strategy that may surely and steadily build a nest egg is to put money into long-term bonds. After maturation of the bond, you will get back your initial investment and also all the interest that collected over the lifetime of the bond. This is a significant 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 as safe an investment as you can ever make.
401K and IRA With Retirement - Palos Hills, IL
However, the best approach when it comes to retirement planning would be to put cash in a 401K plan at work or in an IRA opened with an investment house. For people 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 may be tax-deductible, depending on how much is invested every year.
For more info, please don't hesitate 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 Palos Hills, IL area.
