Retirement Planning – Deerfield, IL
For the people in "Generation X" - defined as people 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 many "baby boomers" either already in the midst of retirement or looking at it in the near future, "Generation X" is the next generation of folks to reach retirement. Sure, it is a ways off, but those in their 30s and 40s should start centering their investment planning on retirement and making sure 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 far better in some ways, and worse somewhat. However, the retirement planning for today's labor force must be far different than it was in earlier times.
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 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 an extended period of time right now than a generation or two ago.
Social Security and Retiring - Deerfield, IL
On the down side, Social Security is going to be a far less dependable income source compared to now. And also the odds are slim-and getting slimmer each 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, retired people will have to rely on their savings to pay for the costs of living and health insurance.
With individuals living longer and needing extra money to do so, retirement planning is an essential activity even for those people who are halfway to the regular retirement age of 65. It could be an intimidating task to plan for a couple of decades into the future, especially with bills, rents and home loans to pay right now, but procrastinating will not make it any less complicated.
Putting even just a small amount of money now into a savings account which works as a retirement savings plan can pay off later. The interest you receive 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 accumulate capital earning a little interest rate until there is enough to invest in a reliable security that will yield you more like a municipal bond.
Another good strategy that may certainly 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 and also all the interest which collected over the life of the bond. That's a significant amount of money for a 20- or 30-year bond-money that may provide a great foundation for retirement. And a municipal or government bond is really as safe an investment that you can ever make.
401K and IRA - Deerfield, IL
However, the best approach when it comes to retirement planning is to put funds in a 401K plan at your workplace or in an IRA opened with an investment house. For those 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 details, please don't hesitate to contact GC Financial Advisors Ltd. at any time and we will be glad to help you! We offer 401K and IRA rollover and review services for folks in the Deerfield, IL area.
