Retirement Planning Company – Glen Ellyn, IL
For anyone in "Generation X" - defined as folks born between the mid-1960s and also the early 1980s - retirement planning seems like something your mother and father or other "old people" would do. But guess what? With many "baby boomers" either already in the middle of retirement or viewing 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 really need to start centering their investment planning on retirement and making certain they've got the sort of retirement they are working hard to enjoy. Here are some tips on preparing for retirement:
Retirement life in the future will be different than the retirement of today. It will be far better in some ways, and worse somewhat. But, the retirement planning for today's labor force must be far different than it was in yesteryear.
On the bright side, individuals 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 4 years more than the average life span in 1980. So investment planning for retirement has to account for a longer period of time now than a generation or two in the past.
Social Security and Retiring - Glen Ellyn, IL
On the down side, Social Security will probably be a far less dependable source of income compared to 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 need to depend on their financial savings to pay for the costs of living and health insurance.
With individuals living longer and needing extra money to do so, retirement planning is an essential activity even for those people who are halfway to the regular retirement age of sixty-five. It can be a daunting task to plan for a couple of decades into the future, particularly with bills, rents and home loans to pay today, but procrastinating will not make it any easier.
Placing even just a small amount of cash into a savings account which functions as a retirement savings plan can pay off later. 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 accumulate capital earning a small 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 can surely and steadily build a nest egg is to invest in long-term bonds. Upon maturation of the bond, you will get back your initial investment as well as all the interest which collected over the lifetime of the bond. This is a tremendous amount of money for a 20- or 30-year bond-money that can provide a nice foundation for retirement. And a municipal or government bond is as safe an investment that you can ever make.
401K and IRA With Retirement - Glen Ellyn, IL
However, the best approach when it comes to retirement planning is to put cash in a 401K plan at your workplace or in an IRA opened with an investment house. For people for whom a 401K is not a retirement planning choice, an IRA is the next best thing. Money put in this account is tax deferred and may be tax-deductible, depending on how much is invested annually.
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 Glen Ellyn, IL area.
