Retirement Planning Services – Downers Grove
For the people in "Generation X" - defined as individuals born between the mid-1960s and also the early 1980s - retirement planning sounds 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 on the horizon, "Generation X" will be the next generation of men and women to reach old age. Sure, it's still a ways off, but people in their 30s and 40s should begin centering their investment planning on retirement and making sure they have the type of retirement they are working so hard to have. Below are great tips on planning for retirement:
Retirement life in the future will be different than the retirement in the present day. It'll be much better in some ways, and worse in some ways. But, the retirement planning for today's workforce must be far different than it was in earlier times.
On the bright side, people are living longer than ever. As of not too long ago, the average life span of an American was 77.9 years, exactly 2.5 years over the average life span in 1990 and more than four 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 ago.
Social Security and Retirement - Downers Grove
On the downside, Social Security will probably be a far less dependable income source than it is now. And 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 workplace. Increasingly more, retired persons will have to rely on their financial savings to pay for the costs of living and health insurance.
With folks living longer and needing extra money to do so, retirement planning is a vital activity even for those 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 little bit of money now into a savings account which functions as a retirement savings plan can pay off in the future. The interest you get 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 little interest rate until there's enough to invest in a trusted security which will yield you more like a municipal bond.
Another good strategy that could surely and progressively build a nest egg is to put money into long-term bonds. Upon maturation of the bond, you will get back your initial investment and also all the interest which collected over the life of the bond. That's a considerable amount of money for a 20- or 30-year bond-money that could 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 With Retirement - Downers Grove
Nevertheless, the best approach when it comes to retirement planning would be 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 into 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'll be glad to help you! We provide 401K and IRA rollover and review services for folks in the Downers Grove area.
