Retirement Planning Company – Wauconda, Illinois
For anyone in "Generation X" - described as folks born between the mid-1960s and also the early 1980s - retirement planning may sound like something your parents or other "old people" might do. But guess what? With many "baby boomers" either already in the midst of retirement or looking at it in the near future, "Generation X" will be 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 ought to begin centering their investment planning on retirement and making sure they have the sort of retirement they are working so hard to have. 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 likely be better in some ways, and worse somewhat. But, the retirement planning for today's workforce needs to be far different than it was in yesteryear.
On the bright side, folks 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 greater than the average life span in 1990 and more than four years more than the average life span in 1980. Therefore investment planning for retirement has to account for a longer period of time now than a generation or two ago.
Social Security and Retiring - Wauconda, Illinois
On the down side, Social Security will probably be a far less trustworthy source of income than it is now. And the odds are 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 former employer. Increasingly more, retired people will need to rely on their financial savings to pay for the expenses of living and medical health insurance.
With folks living longer and needing additional money to do so, retirement planning is an essential activity even for those who are halfway to the standard retirement age of 65. It could be a daunting task to plan for a few decades into the future, especially with bills, housing costs and home loans to pay right now, but procrastinating will not make it any less complicated.
Placing even just a small amount 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 acquire capital earning a small interest rate until there's enough to invest in a reliable security that will yield you more like a municipal bond.
Another solid approach that may surely and progressively 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 life of the bond. This is a significant amount of money for a 20- or 30-year bond-money that may provide a great foundation for retirement. And a municipal or government bond is really as safe an investment that you can ever make.
401K and IRA - Wauconda, Illinois
However, 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 those for whom a 401K isn't a retirement planning option, an IRA is the next best thing. Money put in this account is tax deferred and may be tax-deductible, depending on how much is invested annually.
For more information, please do not hesitate 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 Wauconda, Illinois area.
