Retirement Planning Company – Woodridge
For anyone in "Generation X" - described as folks born between the mid-1960s and also the early 1980s - retirement planning seems like something your mother and father or other "old people" might do. But you know what? With lots of "baby boomers" either already in the midst of retirement or observing it in the near future, "Generation X" is the next generation of individuals to reach retirement. Sure, it is a ways off, but those in their 30s and 40s really need to begin centering their investment planning on retirement and making sure they have the type of retirement they are working hard to enjoy. 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'll be much better in some ways, and worse in some ways. However, the retirement planning for today's workforce must be far different than it was in earlier times.
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 4 years more than the average life span in 1980. Therefore 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 - Woodridge
On the downside, Social Security will probably be a far less dependable income source than it is now. And the likelihood is 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 people will have to depend on their savings to pay for the expenses of living and medical health insurance.
With folks living for a longer time and needing more money to do so, retirement planning is an essential activity even for those people who are halfway to the regular retirement age of sixty-five. It could be an intimidating task to plan for a few decades into the future, especially with bills, housing costs and mortgages to pay today, but procrastinating will not make it any easier.
Placing even just a little bit of money now into a savings account which functions as a retirement savings plan can pay off later. The interest you receive on money in a savings account will allow your initial investments to grow to something sustainable. A savings account will provide a place where you can accumulate capital earning a little interest rate until there is enough to invest in a reliable security that will yield you more like a municipal bond.
Another good strategy which could certainly and progressively build a nest egg is to put money into long-term bonds. On maturation of the bond, you'll get back your initial investment along with 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 which could provide a nice foundation for retirement. And a municipal or government bond is as safe an investment as you can ever make.
401K and IRA With Retirement - Woodridge
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 people 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 might be tax-deductible, depending on how much is invested every year.
For more details, please feel free to contact GC Financial Advisors Ltd. at any time and we'll be glad to help you! We provide 401K and IRA rollover and review services for individuals in the Woodridge area.
