Retirement Planning – South Elgin, IL
For the people in "Generation X" - described as individuals 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 a lot of "baby boomers" either already in the midst of retirement or observing it in the near future, "Generation X" is definitely the next generation of people to reach retirement. Sure, it's still a ways off, but people in their 30s and 40s have to begin centering their investment planning on retirement and ensuring they have the kind of retirement they are working hard to have. Below are great tips on planning for retirement:
Retirement life in the future will be different than the retirement right now. It'll be far better in some ways, and worse somewhat. However, the retirement planning for today's labor force needs to be far different than it was in days gone by.
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 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 a longer period of time right now than a generation or two in the past.
Social Security and Retiring - South Elgin, IL
On the downside, Social Security will probably be a far less reliable income source compared to now. And also the likelihood is 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 previous employer. More and more, retired people will need to depend on their financial savings to cover the costs of just living and health insurance.
With people living for a longer time and needing more money to do so, retirement planning is a vital activity even for those people who are halfway to the common retirement age of sixty-five. 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 less complicated.
Putting even just a small amount of money now into a savings account which serves as a retirement savings plan can pay off in the future. The interest you get 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 pile up capital earning a small interest rate until there is enough to invest in a reliable security that will yield you more like a municipal bond.
Another good approach that may certainly and gradually build a nest egg is to put money into long-term bonds. Upon maturation of the bond, you'll get back your initial investment along with all the interest which collected over the lifetime of the bond. This is a tremendous amount of money for a 20- or 30-year bond-money that may provide a good foundation for retirement. And a municipal or government bond is as safe an investment as you can ever make.
401K and IRA - South Elgin, IL
Nevertheless, the best approach when it comes to retirement planning would be 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 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 every year.
For more information, please feel free to contact GC Financial Advisors Ltd. at any time and we'll be happy to help you! We offer 401K and IRA rollover and review services for individuals in the South Elgin, IL area.
