Retirement Planning Services – Glenview, IL
For anyone in "Generation X" - described as folks born between the mid-1960s and the early 1980s - retirement planning seems like something your parents or other "old people" would do. But you know what? With lots of "baby boomers" either already in the middle of retirement or viewing it on the horizon, "Generation X" is the next generation of folks to reach retirement. Sure, it is a ways off, but those in their 30s and 40s really need to begin centering their investment planning on retirement and making certain they have the sort of retirement they are working hard to have. Below are great tips on planning for retirement:
Retirement life in the foreseeable future will be different than the retirement in the present day. It will be far better in some ways, and worse somewhat. But, the retirement planning for today's workforce needs to be far different than it was in the past.
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 four years more than the average life span in 1980. Therefore investment planning for retirement has to account for a longer period of time right now than a generation or two in the past.
Social Security and Retirement - Glenview, IL
On the down side, Social Security will likely be a far less reliable income source than it is now. And also the likelihood is slim-and getting slimmer each 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, retirees will need to depend on their savings to cover the costs of living and health insurance.
With individuals living for a longer time and needing additional money to do so, retirement planning is an essential activity even for those people who are halfway to the regular retirement age of 65. It can be an intimidating task to plan for a couple of decades into the future, particularly with bills, rents and home loans to pay right now, but procrastinating will not make it any less complicated.
Placing even just a little bit of cash into a savings account that functions as a retirement savings plan can pay off later on. The interest you get on money in a savings account will allow your preliminary investments to grow to something sustainable. A savings account will provide a place where you can accumulate capital earning a little interest rate until there is enough to invest in a trusted security which will yield you more like a municipal bond.
Another good strategy which 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 along with all the interest that collected over the lifetime of the bond. That's a considerable amount of money for a 20- or 30-year bond-money which could 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 - Glenview, IL
Nonetheless, 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 the people for whom a 401K isn't a retirement planning option, 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 every year.
For more info, please don't hesitate 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 individuals in the Glenview, IL area.
