Retirement Planning Company – Cicero
For those in "Generation X" - defined as folks born between the mid-1960s and the early 1980s - retirement planning sounds like something your mother and father or other "old people" might do. But guess what? With a lot of "baby boomers" either already in the middle of retirement or observing it in the near future, "Generation X" stands out as the next generation of men and women to reach retirement. Sure, it is still a ways off, but those in their 30s and 40s have to begin centering their investment planning on retirement and making certain they've got the kind of retirement they are working hard to enjoy. Below are great tips on planning for retirement:
Retirement life in the foreseeable future will be different than the retirement right now. It will be much better in some ways, and worse somewhat. But, the retirement planning for today's labor force 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 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 a longer time of time right now than a generation or two in the past.
Social Security and Retirement - Cicero
On the downside, Social Security will probably be a far less reliable income source than it is now. And 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. More and more, retirees will have to depend on their financial savings to pay for the costs 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 halfway to the regular retirement age of sixty-five. It may be an intimidating task to plan for a couple of decades into the future, particularly with bills, rents and home loans to pay today, but procrastinating will not make it any less complicated.
Putting even just a small amount of cash into a savings account that works 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 provide a place where you can pile up capital earning a small interest rate until there's enough to invest in a trusted security which will yield you more like a municipal bond.
Another good strategy that could certainly and gradually build a nest egg is to put money into long-term bonds. On maturation of the bond, you'll get back your initial investment as well as all the interest that collected over the life of the bond. This is a significant 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 - Cicero
Nevertheless, the best approach when it comes to retirement planning would be to put funds 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 placed in this account is tax deferred and might be tax-deductible, depending on how much is invested every year.
For more details, 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 Cicero area.
