Retirement Planning Services – Elgin, Illinois
For those in "Generation X" - described as people born between the mid-1960s and the early 1980s - retirement planning sounds like something your mother and father or other "old people" might do. But you know what? With a lot of "baby boomers" either already in the middle of retirement or observing it in the near future, "Generation X" will be the next generation of individuals to reach retirement. Sure, it is still a ways off, but those in their 30s and 40s have to start focusing their investment planning on retirement and ensuring they have the sort of retirement they are working so 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 in some ways. However, the retirement planning for today's labor force must be far different than it was in days gone by.
On the bright side, folks 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 an extended period of time right now than a generation or two in the past.
Social Security and Retiring - Elgin, Illinois
On the downside, Social Security is going to be a far less trustworthy source of income compared to 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 employer. Increasingly more, retirees will have to rely on their savings to pay for the costs of just living and health insurance.
With folks living longer and needing more cash to do so, retirement planning is a vital activity even for those people who are halfway to the standard retirement age of sixty-five. It can be an intimidating task to plan for a couple of decades into the future, especially with bills, housing costs and home loans to pay today, but procrastinating will not make it any easier.
Putting even just a small amount of cash into a savings account that serves as a retirement savings plan can pay off in the future. 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 acquire capital earning a small interest rate until there's enough to invest in a trusted security that will yield you more like a municipal bond.
Another good strategy that can certainly and progressively build a nest egg is to put money into long-term bonds. On maturation of the bond, you will get back your initial investment as well as all the interest that collected over the lifetime of the bond. This is a considerable amount of money for a 20- or 30-year bond-money that can provide a good foundation for retirement. And a municipal or government bond is as safe an investment as you can ever make.
401K and IRA With Retirement - Elgin, Illinois
However, the best approach when it comes to retirement planning is to put money in a 401K plan at your workplace or in an IRA opened with an investment house. For those for whom a 401K is not a retirement planning choice, an IRA is the next best thing. Money put into this account is tax deferred and may be tax-deductible, depending on how much is invested each year.
For more info, please do not hesitate to contact GC Financial Advisors Ltd. at any time and we'll be glad to help you! We offer 401K and IRA rollover and review services for folks in the Elgin, Illinois area.
