Retirement Planning Company – Skokie
For anyone in "Generation X" - described as people born between the mid-1960s and also the early 1980s - retirement planning may sound like something your parents or other "old people" would do. But you know what? With lots of "baby boomers" either already in the midst of retirement or observing it on the horizon, "Generation X" is the next generation of individuals to reach old age. Sure, it's still a ways off, but those in their 30s and 40s will need to start centering their investment planning on retirement and making sure they've got the sort of retirement they are working so hard to have. Below are great tips on preparing for retirement:
Retirement life in the foreseeable future will be different than the retirement right now. It will likely be much 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 yesteryear.
On the bright side, folks 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 period of time now than a generation or two in the past.
Social Security and Retiring - Skokie
On the downside, Social Security is going to be a far less reliable source of income compared to 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 previous employer. More and more, retired people will need to rely on their savings to cover the expenses of living and health insurance.
With individuals living longer and needing more cash to do so, retirement planning is an essential activity even for those people who are halfway to the common retirement age of sixty-five. It could 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 will not make it any less difficult.
Putting even just a small amount of cash 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 initial investments to grow to something sustainable. A savings account will provide a place where you can pile up 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 approach that may certainly and gradually build a nest egg is to invest in long-term bonds. Upon maturation of the bond, you'll get back your initial investment and also all the interest that collected over the lifetime of the bond. That's a considerable amount of money for a 20- or 30-year bond-money that may provide a nice foundation for retirement. And a municipal or government bond is as safe an investment that you can ever make.
401K and IRA - Skokie
Nevertheless, the best approach when it comes to retirement planning would be to put funds in a 401K plan at your workplace or in an IRA opened with an investment house. For the 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 each year.
For more information, please do not hesitate to contact GC Financial Advisors Ltd. at any time and we will be glad to help you! We provide 401K and IRA rollover and review services for folks in the Skokie area.
