Retirement Planning Services – Robbins, IL
For those in "Generation X" - defined as people 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 looking at it in the near future, "Generation X" is the next generation of folks to reach retirement. Sure, it is still a ways off, but people in their 30s and 40s really need to start focusing their investment planning on retirement and making certain they've got the kind of retirement they are working hard to have. Below are great tips on preparing for retirement:
Retirement life in the foreseeable future will be different than the retirement of today. It will be 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 earlier times.
On the bright side, individuals are living longer than ever. As of a short while 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 Retirement - Robbins, IL
On the down side, Social Security will probably be a far less trustworthy income source than it is now. And the likelihood is 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 former workplace. More and more, retirees will have 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 money to do so, retirement planning is an essential activity even for those people who are half way to the standard retirement age of 65. It can be a daunting task to plan for a couple of decades into the future, particularly with bills, housing costs 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 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 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 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 life of the bond. This is a considerable amount of money for a 20- or 30-year bond-money which could 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 - Robbins, IL
Nevertheless, 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 people for whom a 401K is not a retirement planning option, an IRA is the next best thing. Money placed in this account is tax deferred and may be tax-deductible, depending on how much is invested annually.
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 Robbins, IL area.
