Retirement Planning – Crestwood, Illinois
For the people in "Generation X" - defined as individuals born between the mid-1960s and the early 1980s - retirement planning sounds like something your mother and father or other "old people" would do. But guess what? With lots of "baby boomers" either already in the middle of retirement or observing it on the horizon, "Generation X" is definitely the next generation of men and women to reach old age. Sure, it's still a ways off, but those in their 30s and 40s will need to start focusing their investment planning on retirement and making certain they've got the sort of retirement they are working so 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 better in some ways, and worse somewhat. But, the retirement planning for today's labor force must 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 4 years more than the average life span in 1980. So investment planning for retirement has to account for an extended period of time now than a generation or two back.
Social Security and Retiring - Crestwood, Illinois
On the downside, Social Security is going to be a far less dependable source of income 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 persons will have to depend on their financial savings to pay for the expenses of just living and health insurance.
With folks living for a longer time and needing more cash to do so, retirement planning is a vital activity even for those people who are half way to the common retirement age of 65. It could be an intimidating task to plan for a couple of decades into the future, particularly with bills, rents and mortgages to pay right now, but procrastinating won't make it any less difficult.
Putting even just a small amount of money now into a savings account which functions 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 supply a place where you can build up capital earning a small interest rate until there's enough to invest in a reliable security which will yield you more like a municipal bond.
Another good approach which could surely and progressively build a nest egg is to put money into long-term bonds. Upon maturation of the bond, you'll 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 which could provide a nice foundation for retirement. And a municipal or government bond is as safe an investment as you can ever make.
401K and IRA With Retirement - Crestwood, Illinois
However, 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 people for whom a 401K is not 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 annually.
For more information, please feel free 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 Crestwood, Illinois area.
