Retirement Planning Company – Posen, Illinois
For the people in "Generation X" - defined as people born between the mid-1960s and the early 1980s - retirement planning sounds like something your mother and father or other "old people" might do. But you know what? With lots of "baby boomers" either already in the middle of retirement or observing it in the near future, "Generation X" is definitely 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 begin focusing their investment planning on retirement and making certain they've got the sort of retirement they are working so hard to enjoy. Below are great tips on preparing for retirement:
Retirement life in the foreseeable future will be different than the retirement in the present day. It'll 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 the past.
On the bright side, folks 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 4 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 - Posen, Illinois
On the downside, Social Security is going to be a far less reliable source of income 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 previous workplace. Increasingly more, retirees will need to depend on their financial savings to pay for the costs of living and health insurance.
With individuals 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 65. It could be a daunting task to plan for a couple of decades into the future, especially with bills, rents and home loans to pay today, but procrastinating won't make it any less difficult.
Putting even just a little bit of cash into a savings account that works as a retirement savings plan can pay off later on. 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 build up capital earning a little interest rate until there is enough to invest in a trusted security which will yield you more like a municipal bond.
Another solid approach which could surely 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 and also all the interest that collected over the lifetime of the bond. That's a significant amount of money for a 20- or 30-year bond-money which could provide a great foundation for retirement. And a municipal or government bond is really as safe an investment as you can ever make.
401K and IRA With Retirement - Posen, Illinois
Nevertheless, the best approach when it comes to retirement planning is to put cash in a 401K plan at your workplace or in an IRA opened with an investment house. For the 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 info, please don't hesitate to contact GC Financial Advisors Ltd. at any time and we will be happy to help you! We provide 401K and IRA rollover and review services for individuals in the Posen, Illinois area.
