Retirement Planning Services – Clarendon Hills, IL
For anyone in "Generation X" - described as people born between the mid-1960s and also the early 1980s - retirement planning seems like something your parents or other "old people" would do. But guess what? With lots 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 people to reach retirement. Sure, it is still a ways off, but those in their 30s and 40s really need to begin focusing their investment planning on retirement and making sure they've got the type of retirement they are working hard to enjoy. Here are some tips on preparing for retirement:
Retirement life in the foreseeable future will be different than the retirement of today. 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 the past.
On the bright side, individuals 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 4 years more than the average life span in 1980. Therefore 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 - Clarendon Hills, IL
On the down side, Social Security will probably be a far less reliable source of income compared to 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 previous employer. Increasingly more, retirees will need to depend on their savings to pay for the costs of living and medical health insurance.
With folks living for a longer time and needing additional money to do so, retirement planning is a vital activity even for those people who are half way to the standard retirement age of 65. It can be a daunting task to plan for a few decades into the future, especially with bills, rents and mortgages to pay today, but procrastinating won't make it any less difficult.
Putting even just a little bit of cash into a savings account that works as a retirement savings plan can pay off later on. The interest you receive on money in a savings account will allow your preliminary investments to grow to something sustainable. A savings account will provide a place where you can accumulate capital earning a small interest rate until there's enough to invest in a trusted security that will yield you more like a municipal bond.
Another good approach that can surely and steadily build a nest egg is to invest in long-term bonds. After 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 considerable amount of money for a 20- or 30-year bond-money that can provide a great foundation for retirement. And a municipal or government bond is as safe an investment that you can ever make.
401K and IRA With Retirement - Clarendon Hills, IL
Nevertheless, the best approach when it comes to retirement planning is 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 choice, an IRA is the next best thing. Money put in this account is tax deferred and may be tax-deductible, depending on how much is invested each year.
For more info, please don't hesitate to contact GC Financial Advisors Ltd. at any time and we'll be glad to help you! We provide 401K and IRA rollover and review services for folks in the Clarendon Hills, IL area.
