Retirement Planning Company – Darien, IL
For those in "Generation X" - described as folks born between the mid-1960s and also the early 1980s - retirement planning may sound like something your parents or other "old people" might do. But you know what? With lots of "baby boomers" either already in the midst of retirement or viewing it in the near future, "Generation X" is the next generation of men and women to reach retirement. Sure, it is still a ways off, but those in their 30s and 40s need to start focusing their investment planning on retirement and ensuring they've got the kind of retirement they are working hard to have. Below are great tips on preparing for retirement:
Retirement life in the future will be different than the retirement right now. It will likely be much better in some ways, and worse somewhat. But, the retirement planning for today's labor force needs to be far different than it was in days gone by.
On the bright side, people are living longer than ever. As of a short while 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. 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 Retirement - Darien, IL
On the down side, Social Security will likely be a far less trustworthy 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 former employer. Increasingly more, retirees will have to depend on their savings to cover the costs of living and medical health insurance.
With folks living for a longer time and needing more money to do so, retirement planning is an essential activity even for those people who are half way to the regular retirement age of 65. It may be a daunting task to plan for a couple of decades into the future, particularly with bills, housing costs and mortgages to pay right now, but procrastinating will not make it any less complicated.
Placing 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 preliminary investments to grow to something sustainable. A savings account will supply a place where you can accumulate capital earning a little interest rate until there's enough to invest in a reliable security that will yield you more like a municipal bond.
Another solid approach that could surely and steadily build a nest egg is to invest in long-term bonds. On maturation of the bond, you will get back your initial investment and also all the interest which collected over the lifetime of the bond. This is a tremendous amount of money for a 20- or 30-year bond-money that could provide a good foundation for retirement. And a municipal or government bond is really as safe an investment as you can ever make.
401K and IRA - Darien, IL
Nonetheless, the best approach when it comes to retirement planning would be to put cash in a 401K plan at your workplace 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 might be tax-deductible, depending on how much is invested each year.
For more info, please feel free to contact GC Financial Advisors Ltd. at any time and we'll be happy to help you! We provide 401K and IRA rollover and review services for folks in the Darien, IL area.
