Retirement Planning Services – Fort Sheridan, Illinois
For those in "Generation X" - described as people born between the mid-1960s and also the early 1980s - retirement planning seems like something your parents or other "old people" might do. But guess what? With a lot of "baby boomers" either already in the midst of retirement or observing it on the horizon, "Generation X" will be the next generation of individuals to reach old age. Sure, it's still a ways off, but people in their 30s and 40s have to begin focusing their investment planning on retirement and making certain they have the sort of retirement they are working so hard to enjoy. 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 far better in some ways, and worse in some ways. But, the retirement planning for today's labor force 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 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 ago.
Social Security and Retirement - Fort Sheridan, Illinois
On the down side, Social Security will probably be a far less trustworthy source of income than it is now. And the odds are slim-and getting slimmer every 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 have to rely on their financial savings to cover the costs of living and health insurance.
With folks living longer and needing more cash to do so, retirement planning is an essential activity even for those people who are half way to the standard retirement age of sixty-five. It may be a daunting task to plan for a couple of decades into the future, especially with bills, housing costs and home loans to pay right now, but procrastinating won't make it any easier.
Putting even just a little bit of money now into a savings account which serves 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 supply a place where you can acquire 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 good approach that may surely and progressively build a nest egg is to invest in long-term bonds. On maturation of the bond, you will get back your initial investment as well as all the interest which collected over the life of the bond. That's a significant amount of money for a 20- or 30-year bond-money that may provide a good foundation for retirement. And a municipal or government bond is really as safe an investment as you can ever make.
401K and IRA - Fort Sheridan, Illinois
Nevertheless, the best approach when it comes to retirement planning would be to put funds in a 401K plan at your workplace 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 details, please don't hesitate to contact GC Financial Advisors Ltd. at any time and we will be happy to help you! We provide 401K and IRA rollover and review services for folks in the Fort Sheridan, Illinois area.
