Retirement Planning Services – Elmwood Park
For anyone in "Generation X" - described as individuals born between the mid-1960s and the early 1980s - retirement planning seems like something your mother and father 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 still a ways off, but those in their 30s and 40s really need to start centering their investment planning on retirement and ensuring they've got the sort of retirement they are working so hard to have. Here are some tips on planning for retirement:
Retirement life in the foreseeable future will be different than the retirement of today. It will likely be much better in some ways, and worse somewhat. But, the retirement planning for today's workforce must be far different than it was in the past.
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 over 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 a longer time of time now than a generation or two back.
Social Security and Retiring - Elmwood Park
On the downside, Social Security will likely 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 previous workplace. Increasingly more, retirees will need to rely on their savings to pay for the expenses of just living and medical health insurance.
With people living longer and needing additional money to do so, retirement planning is an essential activity even for those people who are halfway to the common retirement age of sixty-five. It could be a daunting task to plan for a few decades into the future, particularly with bills, housing costs and home loans to pay right now, but procrastinating won't make it any less difficult.
Putting even just a little bit of cash into a savings account that functions as a retirement savings plan can pay off in the future. The interest you receive on money in a savings account will allow your preliminary investments to grow to something sustainable. A savings account will give you a place where you can pile up 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 solid strategy that could surely and gradually build a nest egg is to invest in long-term bonds. Upon maturation of the bond, you will get back your initial investment and also all the interest that collected over the life of the bond. That's a significant 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 as safe an investment as you can ever make.
401K and IRA With Retirement - Elmwood Park
Nevertheless, the best approach when it comes to retirement planning would be to put cash in a 401K plan at work or in an IRA opened with an investment house. For the people for whom a 401K is not a retirement planning choice, an IRA is the next best thing. Money placed in this account is tax deferred and may 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 glad to help you! We provide 401K and IRA rollover and review services for folks in the Elmwood Park area.
