Retirement Planning – Glendale Heights, Illinois
For those in "Generation X" - described as people born between the mid-1960s and the early 1980s - retirement planning seems like something your mother and father or other "old people" might do. But you know what? With lots of "baby boomers" either already in the middle of retirement or looking at 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 centering their investment planning on retirement and making sure they've got the type of retirement they are working so hard to enjoy. Here are some tips on preparing for retirement:
Retirement life in the future will be different than the retirement right now. It'll be much better in some ways, and worse in some ways. However, the retirement planning for today's workforce needs to be far different than it was in the past.
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 more than 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 right now than a generation or two in the past.
Social Security and Retirement - Glendale Heights, Illinois
On the downside, Social Security will likely be a far less dependable 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 former employer. More and more, retired people will have to rely on their savings to pay for the expenses of just living and health insurance.
With folks living for a longer time and needing more money to do so, retirement planning is a vital activity even for those people who are half way to the standard retirement age of 65. It may be an intimidating task to plan for a few decades into the future, particularly with bills, rents and home loans to pay today, but procrastinating won't make it any less difficult.
Putting even just a little bit of money now into a savings account which works as a retirement savings plan can pay off later on. The interest you get 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 is enough to invest in a trusted security which will yield you more like a municipal bond.
Another solid approach which could surely and steadily build a nest egg is to invest in long-term bonds. After maturation of the bond, you will get back your initial investment and also all the interest which collected over the lifetime of the bond. That's a significant amount of money for a 20- or 30-year bond-money which could 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 - Glendale Heights, Illinois
Nevertheless, 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 the people for whom a 401K is not a retirement planning option, an IRA is the next best thing. Money put in this account is tax deferred and might be tax-deductible, depending on how much is invested every year.
For more info, please do not hesitate 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 individuals in the Glendale Heights, Illinois area.
