Retirement Planning Company – Shorewood, Illinois
For anyone in "Generation X" - defined as individuals born between the mid-1960s and also the early 1980s - retirement planning sounds like something your parents or other "old people" might do. But guess what? With a lot of "baby boomers" either already in the midst of retirement or viewing it on the horizon, "Generation X" stands out as the next generation of individuals to reach old age. 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 certain they've got the kind of retirement they are working so hard to have. Here are some tips on preparing for retirement:
Retirement life in the future will be different than the retirement right now. It'll be better in some ways, and worse somewhat. But, the retirement planning for today's labor force needs to be far different than it was in earlier times.
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. Therefore investment planning for retirement has to account for a longer period of time right now than a generation or two back.
Social Security and Retiring - Shorewood, Illinois
On the downside, Social Security will likely be a far less trustworthy income source than it is now. And also the likelihood is 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 former employer. Increasingly more, retired persons will have to rely on their financial savings to cover the expenses of living and medical health insurance.
With people living longer and needing extra money to do so, retirement planning is a vital activity even for those people who are half way to the regular retirement age of sixty-five. It could be a daunting task to plan for a couple of decades into the future, especially with bills, housing costs and mortgages to pay today, but procrastinating will not make it any easier.
Placing even just a small amount of cash into a savings account that functions as a retirement savings plan can pay off in the future. The interest you get on money in a savings account will allow your initial investments to grow to something sustainable. A savings account will provide a place where you can accumulate capital earning a little interest rate until there is enough to invest in a reliable security which will yield you more like a municipal bond.
Another good strategy that can surely 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 that collected over the life of the bond. This is a considerable amount of money for a 20- or 30-year bond-money that can provide a good foundation for retirement. And a municipal or government bond is really as safe an investment as you can ever make.
401K and IRA - Shorewood, Illinois
Nonetheless, the best approach when it comes to retirement planning would be to put cash in a 401K plan at work 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 put into this account is tax deferred and might 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 will be glad to help you! We offer 401K and IRA rollover and review services for folks in the Shorewood, Illinois area.
