Retirement Planning Services – Homer Glen
For those in "Generation X" - defined as folks 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 guess what? With lots of "baby boomers" either already in the midst of retirement or looking at it in the near future, "Generation X" is definitely the next generation of individuals to reach retirement. Sure, it is still a ways off, but people in their 30s and 40s have to start focusing their investment planning on retirement and making sure they have the sort of retirement they are working hard to enjoy. Below are great tips on planning for retirement:
Retirement life in the future will be different than the retirement of today. It'll be much better in some ways, and worse somewhat. However, the retirement planning for today's workforce needs to be far different than it was in earlier times.
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 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 back.
Social Security and Retirement - Homer Glen
On the downside, Social Security will likely be a far less reliable source of income compared to 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, retired people will have to rely on their financial savings to pay for the expenses of living and health insurance.
With folks living longer and needing additional money to do so, retirement planning is a vital activity even for those people who are half way to the regular retirement age of sixty-five. It could be a daunting task to plan for a couple of decades into the future, particularly with bills, housing costs and mortgages to pay today, but procrastinating won't make it any less difficult.
Placing even just a little bit of cash into a savings account which serves as a retirement savings plan can pay off in the future. The interest you get on money in a savings account will allow your initial investments to grow to something sustainable. A savings account will give you a place where you can acquire capital earning a little interest rate until there's enough to invest in a trusted security which will yield you more like a municipal bond.
Another solid strategy which could certainly and progressively build a nest egg is to put money into long-term bonds. On maturation of the bond, you'll get back your initial investment as well as all the interest which collected over the life of the bond. This is a tremendous amount of money for a 20- or 30-year bond-money which could provide a good foundation for retirement. And a municipal or government bond is as safe an investment that you can ever make.
401K and IRA - Homer Glen
However, the best approach when it comes to retirement planning would be to put funds in a 401K plan at work or in an IRA opened with an investment house. For those for whom a 401K is not a retirement planning option, 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 details, please feel free to contact GC Financial Advisors Ltd. at any time and we'll be happy to help you! We offer 401K and IRA rollover and review services for folks in the Homer Glen area.
