Retirement Planning Services – Saint Charles, Illinois
For those in "Generation X" - defined as individuals born between the mid-1960s and the early 1980s - retirement planning may sound like something your mother and father or other "old people" would do. But you know what? With many "baby boomers" either already in the middle of retirement or observing it in the near future, "Generation X" will be the next generation of people to reach retirement. Sure, it is a ways off, but people in their 30s and 40s must start centering their investment planning on retirement and ensuring they've got the type of retirement they are working hard to have. 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 far better in some ways, and worse in some ways. However, the retirement planning for today's labor force needs to be far different than it was in the past.
On the bright side, individuals 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 more than 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 an extended period of time right now than a generation or two back.
Social Security and Retiring - Saint Charles, Illinois
On the downside, Social Security will likely be a far less reliable income source than it is now. And the odds are 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 former employer. Increasingly more, retired persons will need to depend on their financial savings to pay for the expenses of just living and health insurance.
With folks living for a longer time and needing additional 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 may be a daunting task to plan for a few decades into the future, especially with bills, housing costs and mortgages to pay right now, but procrastinating won't make it any less difficult.
Placing even just a little bit of money now into a savings account which works as a retirement savings plan can pay off later. The interest you get on money in a savings account will allow your preliminary investments to grow to something sustainable. A savings account will offer a place where you can accumulate capital earning a small interest rate until there is enough to invest in a trusted security that will yield you more like a municipal bond.
Another good approach which could certainly and steadily build a nest egg is to invest in long-term bonds. On maturation of the bond, you'll get back your initial investment along with all the interest which collected over the life of the bond. That's a significant amount of money for a 20- or 30-year bond-money which could provide a nice 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 - Saint Charles, Illinois
However, 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 might be tax-deductible, depending on how much is invested each year.
For more details, please don't hesitate to contact GC Financial Advisors Ltd. at any time and we'll be happy to help you! We provide 401K and IRA rollover and review services for individuals in the Saint Charles, Illinois area.
