Retirement Planning Services – Bellwood
For those in "Generation X" - described as individuals born between the mid-1960s and also the early 1980s - retirement planning sounds like something your mother and father or other "old people" would do. But you know what? With lots of "baby boomers" either already in the middle of retirement or observing 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 have to begin focusing their investment planning on retirement and making certain they have the sort of retirement they are working so hard to enjoy. Below are great tips on planning for retirement:
Retirement life in the foreseeable future will be different than the retirement of today. It will be better in some ways, and worse somewhat. But, the retirement planning for today's labor force needs to be far different than it was in days gone by.
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 four 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 back.
Social Security and Retiring - Bellwood
On the downside, Social Security is going to be a far less reliable source of income compared to now. And also the odds are 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 employer. Increasingly more, retired people will have to rely on their savings to cover the expenses of living and health insurance.
With individuals living for a longer time and needing more money to do so, retirement planning is a vital activity even for those who are half way to the common retirement age of sixty-five. It may be a daunting task to plan for a couple of decades into the future, particularly with bills, housing costs and home loans to pay right now, but procrastinating won't make it any easier.
Putting even just a small amount of cash into a savings account which functions 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 accumulate capital earning a little interest rate until there's enough to invest in a reliable security that will yield you more like a municipal bond.
Another good approach that can certainly and progressively 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 which collected over the life 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 as safe an investment as you can ever make.
401K and IRA With Retirement - Bellwood
Nevertheless, the best approach when it comes to retirement planning would be to put cash 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 option, 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 every year.
For more details, please feel free 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 Bellwood area.
