Retirement Planning – Barrington, Illinois
For those in "Generation X" - described as people born between the mid-1960s and the early 1980s - retirement planning seems 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 looking at it on the horizon, "Generation X" is definitely the next generation of people to reach retirement. Sure, it's still a ways off, but those in their 30s and 40s ought to start focusing their investment planning on retirement and making sure they have the kind of retirement they are working hard to enjoy. Below are great tips on planning for retirement:
Retirement life in the future will be different than the retirement of today. It will be far 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, individuals 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 4 years more than the average life span in 1980. So investment planning for retirement has to account for an extended period of time now than a generation or two in the past.
Social Security and Retiring - Barrington, Illinois
On the downside, Social Security will probably be a far less reliable income source compared to now. And also the likelihood is 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 former employer. More and more, retired people will need to rely on their savings to pay for the expenses of just living and health insurance.
With individuals living for a longer time and needing extra money to do so, retirement planning is a vital activity even for those people who are half way to the common retirement age of 65. It could be a daunting task to plan for a couple of decades into the future, particularly with bills, rents and home loans to pay right now, but procrastinating won't make it any easier.
Placing even just a little bit of cash into a savings account that serves 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 offer a place where you can build up 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 solid approach that can surely and gradually build a nest egg is to put money into long-term bonds. Upon maturation of the bond, you'll get back your initial investment and also all the interest that collected over the lifetime of the bond. That's a tremendous amount of money for a 20- or 30-year bond-money that can 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 - Barrington, Illinois
Nonetheless, 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 the people for whom a 401K is not a retirement planning choice, an IRA is the next best thing. Money put in this account is tax deferred and may be tax-deductible, depending on how much is invested annually.
For more information, 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 Barrington, Illinois area.
