Retirement Planning Services – Calumet City, IL
For those in "Generation X" - defined as folks born between the mid-1960s and the early 1980s - retirement planning may sound like something your mother and father or other "old people" might do. But you know what? With a lot of "baby boomers" either already in the middle of retirement or observing it in the near future, "Generation X" is definitely the next generation of folks to reach old age. Sure, it's still a ways off, but those in their 30s and 40s should begin focusing their investment planning on retirement and making sure they have the sort of retirement they are working hard to have. Below are great tips on planning for retirement:
Retirement life in the foreseeable future will be different than the retirement in the present day. It'll be better in some ways, and worse somewhat. However, the retirement planning for today's workforce must 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 over the average life span in 1990 and more than 4 years more than the average life span in 1980. Therefore investment planning for retirement has to account for a longer period of time now than a generation or two in the past.
Social Security and Retirement - Calumet City, IL
On the downside, Social Security will likely be a far less reliable income source compared to now. And also the likelihood is slim-and getting slimmer every 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 workplace. More and more, retired people will have to depend on their financial savings to pay for the costs of just living and health insurance.
With people living longer and needing more cash to do so, retirement planning is an essential activity even for those people who are half way to the regular retirement age of sixty-five. It can be a daunting task to plan for a few decades into the future, especially with bills, rents and mortgages to pay right now, but procrastinating won't make it any easier.
Putting even just a small amount of cash into a savings account that serves as a retirement savings plan can pay off in the future. The interest you receive on money in a savings account will allow your initial investments to grow to something sustainable. A savings account will give you a place where you can pile up capital earning a little interest rate until there is enough to invest in a reliable security which will yield you more like a municipal bond.
Another good strategy that could surely and progressively build a nest egg is to invest in long-term bonds. On maturation of the bond, you'll get back your initial investment along with all the interest that collected over the lifetime of the bond. That's a considerable amount of money for a 20- or 30-year bond-money that could provide a nice foundation for retirement. And a municipal or government bond is really as safe an investment as you can ever make.
401K and IRA - Calumet City, IL
Nevertheless, the best approach when it comes to retirement planning would be to put cash in a 401K plan at work or in an IRA opened with an investment house. For the people for whom a 401K isn't 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 every year.
For more info, please feel free 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 folks in the Calumet City, IL area.
