Retirement Planning Services – Tinley Park, IL
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 looking at it in the near future, "Generation X" is the next generation of men and women to reach old age. Sure, it's still a ways off, but people in their 30s and 40s must start centering their investment planning on retirement and ensuring they have the sort of retirement they are working so hard to have. Here are some tips on planning for retirement:
Retirement life in the future will be different than the retirement in the present day. It will likely be far better in some ways, and worse in some ways. However, the retirement planning for today's labor force must be far different than it was in the past.
On the bright side, individuals are living longer than ever. As of a few years ago, the average life span of an American was 77.9 years, exactly 2.5 years greater than 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 an extended period of time right now than a generation or two ago.
Social Security and Retirement - Tinley Park, IL
On the down side, Social Security is going to be a far less dependable income source compared to now. And 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 previous employer. More and more, retired persons will have to rely on their financial savings to cover the expenses of just living and medical health insurance.
With folks living for a longer time and needing additional money to do so, retirement planning is a vital activity even for those who are half way to the standard retirement age of sixty-five. It can be a daunting task to plan for a couple of decades into the future, especially with bills, housing costs and mortgages to pay right now, but procrastinating won't make it any less difficult.
Putting even just a little bit of cash into a savings account which 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 offer a place where you can acquire capital earning a small interest rate until there's enough to invest in a reliable security which will yield you more like a municipal bond.
Another good strategy that could certainly and progressively build a nest egg is to invest in long-term bonds. On maturation of the bond, you'll get back your initial investment as well as all the interest which 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 With Retirement - Tinley Park, IL
Nonetheless, the best approach when it comes to retirement planning is to put money 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 into this account is tax deferred and might be tax-deductible, depending on how much is invested each 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 provide 401K and IRA rollover and review services for individuals in the Tinley Park, IL area.
