Retirement Planning Services – Schiller Park
For anyone in "Generation X" - described as individuals born between the mid-1960s and also the early 1980s - retirement planning seems like something your mother and father or other "old people" would do. But guess what? With lots of "baby boomers" either already in the midst of retirement or looking at it on the horizon, "Generation X" stands out as the next generation of men and women to reach old age. Sure, it is still a ways off, but people in their 30s and 40s must start focusing 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 planning 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 workforce needs to be far different than it was in yesteryear.
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 4 years more than the average life span in 1980. So investment planning for retirement has to account for a longer time of time right now than a generation or two in the past.
Social Security and Retirement - Schiller Park
On the down side, Social Security will probably be a far less trustworthy source of income than it is now. And also the odds are 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 previous workplace. More and more, retirees will have to rely on their financial savings to cover the expenses of living and medical health insurance.
With folks living longer and needing more cash to do so, retirement planning is a vital activity even for those people who are halfway to the common retirement age of 65. It can be an intimidating task to plan for a few decades into the future, especially with bills, rents and mortgages to pay right now, but procrastinating won't make it any easier.
Putting even just a little bit of cash into a savings account that works as a retirement savings plan can pay off later. The interest you get on money in a savings account will allow your initial investments to grow to something sustainable. A savings account will offer a place where you can acquire capital earning a small interest rate until there is enough to invest in a reliable security which will yield you more like a municipal bond.
Another solid strategy that could certainly and progressively build a nest egg is to put money into long-term bonds. After maturation of the bond, you'll get back your initial investment along with all the interest that collected over the lifetime of the bond. This is a significant amount of money for a 20- or 30-year bond-money that could provide a great foundation for retirement. And a municipal or government bond is as safe an investment that you can ever make.
401K and IRA - Schiller Park
Nonetheless, the best approach when it comes to retirement planning is to put money in a 401K plan at work 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 into this account is tax deferred and may be tax-deductible, depending on how much is invested each year.
For more details, please feel free to contact GC Financial Advisors Ltd. at any time and we'll be glad to help you! We offer 401K and IRA rollover and review services for folks in the Schiller Park area.
