Retirement Planning Services – Addison, IL
For the people in "Generation X" - described 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 a lot of "baby boomers" either already in the middle of retirement or viewing it on the horizon, "Generation X" is the next generation of people to reach old age. Sure, it is a ways off, but people in their 30s and 40s must begin centering their investment planning on retirement and making certain they have the sort of retirement they are working hard to have. Below are great tips on planning for retirement:
Retirement life in the future will be different than the retirement of today. It will be better in some ways, and worse in some ways. But, the retirement planning for today's workforce must be far different than it was in the past.
On the bright side, people 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 four years more than the average life span in 1980. So 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 - Addison, IL
On the downside, Social Security is going to be a far less trustworthy source of income than it is now. And also the likelihood is slim-and getting slimmer every 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 workplace. Increasingly more, retired people will have to rely on their financial savings to pay for the costs of living and medical health insurance.
With individuals living longer and needing more money to do so, retirement planning is a vital activity even for those people who are halfway to the common retirement age of 65. It can be a daunting task to plan for a couple of decades into the future, especially with bills, rents and mortgages to pay right now, but procrastinating won't 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 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 accumulate capital earning a small interest rate until there is enough to invest in a trusted security which will yield you more like a municipal bond.
Another solid approach that can certainly 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 along with all the interest that collected over the lifetime of the bond. This is a tremendous amount of money for a 20- or 30-year bond-money that can 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 - Addison, IL
Nevertheless, the best approach when it comes to retirement planning would be 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 is not a retirement planning option, an IRA is the next best thing. Money put into 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 will be glad to help you! We provide 401K and IRA rollover and review services for folks in the Addison, IL area.
