Retirement Planning – Berkeley, Illinois
For the people in "Generation X" - described as individuals born between the mid-1960s and the early 1980s - retirement planning seems like something your mother and father or other "old people" would do. But guess what? With a lot of "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 people to reach retirement. Sure, it is a ways off, but those in their 30s and 40s need to start focusing their investment planning on retirement and making sure they've got the type of retirement they are working hard to enjoy. Below are great tips on preparing for retirement:
Retirement life in the future will be different than the retirement right now. It'll be much better in some ways, and worse somewhat. However, the retirement planning for today's labor force needs to be far different than it was in the past.
On the bright side, folks 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 more 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 a longer period of time right now than a generation or two back.
Social Security and Retiring - Berkeley, Illinois
On the down side, Social Security will probably be a far less dependable 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 former employer. Increasingly more, retired people will have to depend on their financial savings to pay for the costs of living and medical health insurance.
With people living longer and needing more money to do so, retirement planning is an essential activity even for those who are halfway to the common retirement age of sixty-five. It could be a daunting task to plan for a couple of decades into the future, especially with bills, housing costs and mortgages to pay today, but procrastinating will not make it any less complicated.
Putting even just a small amount 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 supply a place where you can acquire capital earning a little interest rate until there's enough to invest in a trusted security which will yield you more like a municipal bond.
Another good approach that may certainly and gradually build a nest egg is to put money into long-term bonds. Upon maturation of the bond, you will get back your initial investment as well as all the interest which collected over the lifetime of the bond. That's a considerable amount of money for a 20- or 30-year bond-money that may 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 - Berkeley, Illinois
However, the best approach when it comes to retirement planning would be to put money in a 401K plan at work or in an IRA opened with an investment house. For those for whom a 401K isn't a retirement planning choice, 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 annually.
For more information, please do not hesitate to contact GC Financial Advisors Ltd. at any time and we will be happy to help you! We provide 401K and IRA rollover and review services for individuals in the Berkeley, Illinois area.
