Retirement Planning Company – Bensenville, Illinois
For anyone in "Generation X" - described as folks born between the mid-1960s and also the early 1980s - retirement planning sounds 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 in the near future, "Generation X" is definitely the next generation of individuals to reach old age. Sure, it is still a ways off, but those in their 30s and 40s have to start centering their investment planning on retirement and making sure they've got the sort of retirement they are working hard to have. Here are some tips on planning for retirement:
Retirement life in the future will be different than the retirement in the present day. It will be much better in some ways, and worse in some ways. However, the retirement planning for today's labor force must be far different than it was in yesteryear.
On the bright side, people 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 ago.
Social Security and Retirement - Bensenville, Illinois
On the downside, Social Security will likely be a far less dependable source of income compared to now. And 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 previous employer. Increasingly more, retirees will need to depend on their savings to cover the expenses of living and health insurance.
With people living longer and needing extra money to do so, retirement planning is an essential activity even for those people who are half way to the common retirement age of sixty-five. It can be a daunting task to plan for a few decades into the future, especially with bills, housing costs 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 functions as a retirement savings plan can pay off in the future. The interest you receive 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's enough to invest in a trusted security that will yield you more like a municipal bond.
Another solid strategy 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 good foundation for retirement. And a municipal or government bond is really as safe an investment as you can ever make.
401K and IRA - Bensenville, Illinois
Nonetheless, the best approach when it comes to retirement planning is to put funds in a 401K plan at your workplace or in an IRA opened with an investment house. For people for whom a 401K is not a retirement planning choice, an IRA is the next best thing. Money put into this account is tax deferred and might be tax-deductible, depending on how much is invested annually.
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 individuals in the Bensenville, Illinois area.
