Retirement Planning Company – South Holland, IL
For the people in "Generation X" - defined as people born between the mid-1960s and also the early 1980s - retirement planning sounds like something your mother and father or other "old people" would do. But guess what? With a lot of "baby boomers" either already in the midst of retirement or viewing it in the near future, "Generation X" stands out as the next generation of people to reach old age. Sure, it is still a ways off, but people in their 30s and 40s really need to begin centering their investment planning on retirement and making sure they have the kind of retirement they are working hard to enjoy. Here are some tips on preparing for retirement:
Retirement life in the future will be different than the retirement of today. It will be much better in some ways, and worse in some ways. But, the retirement planning for today's workforce needs to be far different than it was in days gone by.
On the bright side, people 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 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 back.
Social Security and Retiring - South Holland, IL
On the down side, Social Security will probably be a far less trustworthy income source than it is now. And also the odds are slim-and getting slimmer each year-that retirees 20 and 30 years from now will be able to rely on a work pension and enjoy lifetime benefits from their former workplace. Increasingly more, retired people will have to depend on their financial savings to pay for the costs of living and medical health insurance.
With individuals living longer and needing more cash to do so, retirement planning is a vital activity even for those who are halfway to the regular retirement age of sixty-five. It can be an intimidating task to plan for a couple of decades into the future, particularly with bills, housing costs and mortgages to pay right now, but procrastinating will not make it any easier.
Placing even just a small amount of cash into a savings account that works 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 provide a place where you can acquire capital earning a little interest rate until there's enough to invest in a trusted security which will yield you more like a municipal bond.
Another good strategy that can surely and progressively build a nest egg is to put money into long-term bonds. On maturation of the bond, you'll get back your initial investment and also all the interest that collected over the life of the bond. That's a tremendous 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 that you can ever make.
401K and IRA With Retirement - South Holland, IL
However, the best approach when it comes to retirement planning is to put cash in a 401K plan at your workplace or in an IRA opened with an investment house. For people for whom a 401K is not a retirement planning option, an IRA is the next best thing. Money put in this account is tax deferred and might be tax-deductible, depending on how much is invested annually.
For more info, please feel free to contact GC Financial Advisors Ltd. at any time and we'll be happy to help you! We provide 401K and IRA rollover and review services for folks in the South Holland, IL area.
