Retirement Planning Services – Riverside, Illinois
For the people in "Generation X" - described as folks born between the mid-1960s and also the early 1980s - retirement planning sounds like something your mother and father or other "old people" would do. But you know what? With a lot of "baby boomers" either already in the middle of retirement or viewing it in the near future, "Generation X" is the next generation of individuals to reach retirement. Sure, it's still a ways off, but those in their 30s and 40s have to begin focusing 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 preparing for retirement:
Retirement life in the future will be different than the retirement in the present day. It will be better in some ways, and worse somewhat. However, the retirement planning for today's workforce 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 greater than 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 period of time now than a generation or two back.
Social Security and Retiring - Riverside, Illinois
On the down side, Social Security will probably be a far less dependable income source than it is now. And the odds are slim-and getting slimmer every year-that retirees 20 and 30 years from now will be able to rely on a work pension and enjoy lifetime benefits from their previous employer. More and more, retirees will have to depend on their savings to pay for the costs of living and medical health insurance.
With folks living for a longer time and needing more money to do so, retirement planning is an essential activity even for those who are half way to the regular retirement age of 65. It can be an intimidating task to plan for a couple of decades into the future, especially with bills, rents and mortgages to pay right now, but procrastinating won't make it any less difficult.
Placing even just a small amount of money now into a savings account which serves 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 give you a place where you can build up capital earning a little interest rate until there's enough to invest in a reliable security which will yield you more like a municipal bond.
Another good approach that can certainly and gradually build a nest egg is to put money into long-term bonds. After maturation of the bond, you'll get back your initial investment as well as all the interest which collected over the lifetime of the bond. That's a tremendous amount of money for a 20- or 30-year bond-money that can provide a nice foundation for retirement. And a municipal or government bond is as safe an investment as you can ever make.
401K and IRA - Riverside, 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 those for whom a 401K is not a retirement planning choice, an IRA is the next best thing. Money placed in this account is tax deferred and might be tax-deductible, depending on how much is invested every year.
For more details, please do not 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 folks in the Riverside, Illinois area.
