Retirement Planning Company – Western Springs, IL
For anyone in "Generation X" - described as folks born between the mid-1960s and also the early 1980s - retirement planning seems 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 viewing it on the horizon, "Generation X" is definitely the next generation of folks to reach retirement. Sure, it is still a ways off, but people in their 30s and 40s must begin centering their investment planning on retirement and making sure they've got the type of retirement they are working so hard to enjoy. Here are some tips on planning for retirement:
Retirement life in the foreseeable future will be different than the retirement of today. It will likely be better in some ways, and worse in some ways. However, the retirement planning for today's workforce needs to be far different than it was in yesteryear.
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 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 a longer period of time now than a generation or two ago.
Social Security and Retirement - Western Springs, IL
On the downside, Social Security will likely be a far less trustworthy source of income compared to now. And 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 previous workplace. More and more, retired people will need to rely on their financial savings to pay for the expenses of living and health insurance.
With folks living for a longer time and needing more money 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 a daunting task to plan for a couple of decades into the future, especially with bills, rents and home loans to pay today, but procrastinating will not make it any less complicated.
Putting even just a little bit of cash into a savings account which serves as a retirement savings plan can pay off later on. The interest you get on money in a savings account will allow your initial investments to grow to something sustainable. A savings account will offer a place where you can build up capital earning a small interest rate until there's enough to invest in a trusted 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. After maturation of the bond, you'll get back your initial investment along with all the interest which collected over the life of the bond. This is a considerable amount of money for a 20- or 30-year bond-money that may provide a nice 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 - Western Springs, IL
However, the best approach when it comes to retirement planning is to put funds 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 information, please do not hesitate to contact GC Financial Advisors Ltd. at any time and we will be glad to help you! We provide 401K and IRA rollover and review services for folks in the Western Springs, IL area.
