Retirement Planning Services – Lake Bluff
For anyone in "Generation X" - described as individuals born between the mid-1960s and the early 1980s - retirement planning sounds like something your parents or other "old people" might do. But you know what? With a lot of "baby boomers" either already in the midst of retirement or viewing it in the near future, "Generation X" is the next generation of folks to reach retirement. Sure, it is still a ways off, but those in their 30s and 40s have to start focusing their investment planning on retirement and ensuring they've got 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 will be far better in some ways, and worse in some ways. However, the retirement planning for today's labor force must be far different than it was in yesteryear.
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 greater than 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 an extended period of time now than a generation or two in the past.
Social Security and Retirement - Lake Bluff
On the downside, Social Security will probably be a far less trustworthy source of income compared to now. And also the odds are slim-and getting slimmer every year-that retirees 20 and 30 years from now will be able to rely on a work pension and enjoy lifetime benefits from their previous workplace. Increasingly more, retired persons will have to rely on their savings to cover the expenses of just living and medical health insurance.
With people living longer and needing more cash to do so, retirement planning is an essential activity even for those who are halfway to the standard retirement age of sixty-five. It could be a daunting task to plan for a few decades into the future, especially with bills, housing costs and home loans to pay today, but procrastinating won't make it any less difficult.
Putting even just a small amount of money now into a savings account that serves 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 provide a place where you can accumulate capital earning a little interest rate until there is enough to invest in a reliable security which will yield you more like a municipal bond.
Another good approach which could surely and gradually build a nest egg is to invest in long-term bonds. Upon maturation of the bond, you'll get back your initial investment as well as all the interest that collected over the lifetime of the bond. This is a tremendous 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 as safe an investment as you can ever make.
401K and IRA With Retirement - Lake Bluff
However, the best approach when it comes to retirement planning would be to put funds 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 choice, 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 each year.
For more info, please don't hesitate 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 Lake Bluff area.
