Retirement Planning Company – Park Ridge, IL
For those in "Generation X" - described 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 guess what? With lots of "baby boomers" either already in the midst of retirement or observing it in the near future, "Generation X" is definitely the next generation of people to reach old age. Sure, it is still a ways off, but those in their 30s and 40s must begin focusing their investment planning on retirement and ensuring they have the sort of retirement they are working so 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'll be much better in some ways, and worse somewhat. 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 4 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 Retirement - Park Ridge, IL
On the down side, Social Security will likely be a far less dependable source of income compared to now. And also the likelihood is 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 former employer. Increasingly more, retired people will need to depend on their financial savings to cover the expenses of living and medical health insurance.
With people living for a longer time and needing extra money to do so, retirement planning is an essential activity even for those people who are halfway to the regular retirement age of sixty-five. It can be a daunting task to plan for a few decades into the future, especially with bills, housing costs and home loans to pay right now, but procrastinating won't make it any easier.
Putting even just a small amount of cash into a savings account which functions 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 give you a place where you can accumulate capital earning a small interest rate until there's enough to invest in a trusted security which will yield you more like a municipal bond.
Another good strategy that may certainly and steadily build a nest egg is to invest in long-term bonds. After maturation of the bond, you'll get back your initial investment and also all the interest which collected over the lifetime of the bond. That's 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 really as safe an investment that you can ever make.
401K and IRA With Retirement - Park Ridge, IL
Nonetheless, the best approach when it comes to retirement planning would be 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 is not a retirement planning option, 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 annually.
For more information, please do not hesitate 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 folks in the Park Ridge, IL area.
