Retirement Planning – Willowbrook, IL
For the people in "Generation X" - described as folks born between the mid-1960s and the early 1980s - retirement planning seems like something your mother and father or other "old people" might 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" will be the next generation of individuals to reach old age. Sure, it's still a ways off, but people in their 30s and 40s will need to begin focusing their investment planning on retirement and ensuring they have the sort 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 in the present day. It will be far better in some ways, and worse somewhat. However, the retirement planning for today's labor force needs to 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. 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 - Willowbrook, IL
On the down side, Social Security is going to be a far less reliable income source 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 employer. More and more, retired people will need to depend on their financial savings to pay for the costs of living and medical health insurance.
With folks living longer and needing more cash to do so, retirement planning is an essential activity even for those who are half way to the regular retirement age of sixty-five. It can be an intimidating task to plan for a few decades into the future, particularly with bills, rents and mortgages to pay today, but procrastinating won't make it any easier.
Putting even just a small amount of cash into a savings account which works as a retirement savings plan can pay off later. The interest you get 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 accumulate capital earning a little interest rate until there is enough to invest in a reliable security which will yield you more like a municipal bond.
Another good strategy which could surely and gradually 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 which collected over the life of the bond. That's a tremendous amount of money for a 20- or 30-year bond-money which could 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 - Willowbrook, IL
However, the best approach when it comes to retirement planning would be to put funds in a 401K plan at work or in an IRA opened with an investment house. For the people for whom a 401K isn't a retirement planning option, an IRA is the next best thing. Money placed in this account is tax deferred and might be tax-deductible, depending on how much is invested every year.
For more info, please don't hesitate to contact GC Financial Advisors Ltd. at any time and we will be glad to help you! We offer 401K and IRA rollover and review services for folks in the Willowbrook, IL area.
