Retirement Planning Company – Skokie, Illinois
For anyone in "Generation X" - described as individuals born between the mid-1960s and also the early 1980s - retirement planning seems like something your parents or other "old people" would do. But you know what? With a lot of "baby boomers" either already in the midst of retirement or viewing it on the horizon, "Generation X" is the next generation of men and women to reach old age. Sure, it is still a ways off, but those in their 30s and 40s should begin focusing their investment planning on retirement and ensuring they have the kind of retirement they are working hard to enjoy. Below are great tips on planning for retirement:
Retirement life in the foreseeable future will be different than the retirement in the present day. It will be better in some ways, and worse somewhat. But, the retirement planning for today's workforce must be far different than it was in yesteryear.
On the bright side, people 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 over the average life span in 1990 and more than four 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 ago.
Social Security and Retiring - Skokie, Illinois
On the down side, Social Security will probably be a far less dependable source of income compared to 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 former workplace. Increasingly more, retirees will need to rely on their savings to cover the expenses of just living and health insurance.
With people living for a longer time and needing more cash to do so, retirement planning is a vital activity even for those who are halfway to the standard retirement age of 65. It could be an intimidating task to plan for a couple of decades into the future, especially with bills, housing costs and mortgages to pay right now, but procrastinating will not make it any less difficult.
Placing even just a little bit of money now into a savings account that 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 preliminary investments to grow to something sustainable. A savings account will give you a place where you can accumulate capital earning a small interest rate until there is enough to invest in a trusted security which will yield you more like a municipal bond.
Another good approach that could certainly and gradually build a nest egg is to invest in long-term bonds. On maturation of the bond, you will get back your initial investment along with all the interest that collected over the lifetime of the bond. This is a considerable 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 - Skokie, Illinois
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 those for whom a 401K isn't 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 details, please don't hesitate 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 Skokie, Illinois area.
