Retirement Planning – Westchester, IL
For the people in "Generation X" - defined as folks born between the mid-1960s and the early 1980s - retirement planning sounds like something your parents or other "old people" might do. But you know what? With many "baby boomers" either already in the middle of retirement or viewing it on the horizon, "Generation X" will be the next generation of people to reach old age. Sure, it is still a ways off, but people in their 30s and 40s must start centering their investment planning on retirement and making sure they've got the type of retirement they are working hard to enjoy. Below are great tips on preparing for retirement:
Retirement life in the future will be different than the retirement in the present day. It will be far better in some ways, and worse somewhat. However, the retirement planning for today's workforce needs to be far different than it was in the past.
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 greater than the average life span in 1990 and more than 4 years more than the average life span in 1980. Therefore investment planning for retirement has to account for an extended period of time now than a generation or two back.
Social Security and Retirement - Westchester, IL
On the down side, Social Security is going to be a far less dependable income source compared to now. And also 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 workplace. More and more, retired people will have to rely on their savings to cover the expenses of just living and medical health insurance.
With people living longer and needing more cash to do so, retirement planning is a vital activity even for those who are halfway to the common retirement age of 65. It may be a daunting task to plan for a couple of 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 which functions 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 offer a place where you can pile up capital earning a small interest rate until there is enough to invest in a trusted security that will yield you more like a municipal bond.
Another good approach that may surely and progressively build a nest egg is to put money into long-term bonds. After maturation of the bond, you'll get back your initial investment and also all the interest which collected over the life of the bond. That's a considerable 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 that you can ever make.
401K and IRA With Retirement - Westchester, IL
Nonetheless, the best approach when it comes to retirement planning is to put money in a 401K plan at work or in an IRA opened with an investment house. For people for whom a 401K isn't a retirement planning choice, 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 info, please don't hesitate to contact GC Financial Advisors Ltd. at any time and we will be happy to help you! We offer 401K and IRA rollover and review services for individuals in the Westchester, IL area.
