Retirement Planning Company – Elmhurst, IL
For the people in "Generation X" - defined as folks born between the mid-1960s and the early 1980s - retirement planning may sound like something your mother and father or other "old people" would do. But you know what? With a lot of "baby boomers" either already in the midst of retirement or looking at it on the horizon, "Generation X" stands out as the next generation of men and women to reach retirement. Sure, it's still a ways off, but people in their 30s and 40s need to start centering their investment planning on retirement and making sure they have the kind of retirement they are working hard to enjoy. Below are great tips on preparing for retirement:
Retirement life in the foreseeable future will be different than the retirement in the present day. It will likely be much better in some ways, and worse somewhat. But, the retirement planning for today's workforce needs to 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 over 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 now than a generation or two back.
Social Security and Retirement - Elmhurst, IL
On the down side, Social Security is going to be a far less dependable source of income than it is now. And also the likelihood is slim-and getting slimmer each year-that retirees 20 and 30 years from now will be able to rely on a work pension and enjoy lifetime benefits from their former workplace. More and more, retired people will have to depend on their financial savings to pay for the costs of living and medical health insurance.
With folks living for a longer time and needing more cash to do so, retirement planning is a vital activity even for those who are half way to the regular retirement age of sixty-five. It may be a daunting task to plan for a couple of decades into the future, particularly with bills, rents and mortgages to pay right now, but procrastinating will not make it any less complicated.
Putting even just a little bit of cash into a savings account which works 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 offer a place where you can build up capital earning a little interest rate until there is enough to invest in a trusted security that will yield you more like a municipal bond.
Another good strategy that may 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 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 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 With Retirement - Elmhurst, IL
However, 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 is not 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 every year.
For more info, please feel free to contact GC Financial Advisors Ltd. at any time and we will be happy to help you! We offer 401K and IRA rollover and review services for folks in the Elmhurst, IL area.
