Retirement Planning – Hometown
For those in "Generation X" - described as people born between the mid-1960s and the early 1980s - retirement planning may sound like something your parents or other "old people" might do. But you know what? With many "baby boomers" either already in the middle of retirement or viewing it on the horizon, "Generation X" stands out as the next generation of individuals to reach old age. 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've got the type of retirement they are working so hard to have. Below are great tips on planning for retirement:
Retirement life in the future will be different than the retirement in the present day. It'll be far better in some ways, and worse somewhat. But, the retirement planning for today's labor force needs to be far different than it was in earlier times.
On the bright side, people 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. Therefore 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 - Hometown
On the downside, Social Security is going to be a far less dependable income source than it is now. And 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. Increasingly more, retired people will have to depend on their financial savings to cover the expenses of just living and medical health insurance.
With individuals living for a longer time and needing extra money to do so, retirement planning is a vital activity even for those who are halfway to the regular retirement age of sixty-five. It could be an intimidating task to plan for a couple of decades into the future, particularly with bills, rents and home loans to pay today, but procrastinating won't make it any less difficult.
Placing even just a small amount of cash into a savings account which functions as a retirement savings plan can pay off in the future. 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 little interest rate until there's enough to invest in a trusted security that will yield you more like a municipal bond.
Another solid approach that can certainly and gradually build a nest egg is to invest in 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 significant amount of money for a 20- or 30-year bond-money that can 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 - Hometown
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 those for whom a 401K isn't a retirement planning option, an IRA is the next best thing. Money placed in this account is tax deferred and might be tax-deductible, depending on how much is invested annually.
For more information, please feel free to contact GC Financial Advisors Ltd. at any time and we'll be glad to help you! We provide 401K and IRA rollover and review services for folks in the Hometown area.
