Retirement Planning – Dolton, Illinois
For the people in "Generation X" - described as folks born between the mid-1960s and the early 1980s - retirement planning may sound like something your parents or other "old people" would do. But you know what? With lots of "baby boomers" either already in the middle of retirement or looking at it in the near future, "Generation X" is definitely the next generation of people to reach retirement. Sure, it is a ways off, but those in their 30s and 40s ought to begin centering their investment planning on retirement and ensuring they've got the sort of retirement they are working hard to enjoy. Here are some tips on preparing for retirement:
Retirement life in the future will be different than the retirement in the present day. It'll be far better in some ways, and worse in some ways. However, the retirement planning for today's workforce needs to be far different than it was in days gone by.
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 four years more than the average life span in 1980. So investment planning for retirement has to account for an extended period of time right now than a generation or two back.
Social Security and Retiring - Dolton, Illinois
On the down side, Social Security is going to be a far less reliable source of income than it is now. And 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 workplace. Increasingly more, retirees will have to rely on their financial savings to pay for the costs of living and health insurance.
With people living for a longer time and needing extra money to do so, retirement planning is an essential activity even for those who are halfway to the regular retirement age of sixty-five. It can be a daunting task to plan for a few decades into the future, especially with bills, housing costs and mortgages to pay today, but procrastinating won't make it any easier.
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 receive on money in a savings account will allow your initial investments to grow to something sustainable. A savings account will offer a place where you can pile up capital earning a small interest rate until there is enough to invest in a trusted security that will yield you more like a municipal bond.
Another good strategy which could certainly and steadily build a nest egg is to put money into long-term bonds. After maturation of the bond, you will get back your initial investment along with all the interest that collected over the life of the bond. This is 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 really as safe an investment as you can ever make.
401K and IRA With Retirement - Dolton, Illinois
Nonetheless, the best approach when it comes to retirement planning is to put funds in a 401K plan at work 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 every year.
For more info, please don't hesitate to contact GC Financial Advisors Ltd. at any time and we'll be happy to help you! We offer 401K and IRA rollover and review services for individuals in the Dolton, Illinois area.
