Retirement Planning Services – Lemont, Illinois
For anyone in "Generation X" - described as folks born between the mid-1960s and the early 1980s - retirement planning sounds like something your mother and father 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" is definitely the next generation of folks to reach old age. Sure, it is a ways off, but people in their 30s and 40s need to begin focusing their investment planning on retirement and making sure they've got the type of retirement they are working hard to enjoy. Below are great tips on preparing for retirement:
Retirement life in the future will be different than the retirement right now. It will likely be much better in some ways, and worse somewhat. However, the retirement planning for today's workforce must 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 more than the average life span in 1990 and more than 4 years more than the average life span in 1980. So investment planning for retirement has to account for a longer period of time right now than a generation or two back.
Social Security and Retirement - Lemont, Illinois
On the downside, Social Security is going to be a far less reliable income source than it is 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, retirees will need to rely on their financial savings to pay for the expenses of living and health insurance.
With folks living for a longer time and needing more cash to do so, retirement planning is a vital activity even for those people who are halfway to the common retirement age of sixty-five. It can be an intimidating task to plan for a few decades into the future, particularly with bills, rents and mortgages to pay today, but procrastinating will not make it any easier.
Placing even just a small amount 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 supply a place where you can acquire 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 that may certainly and steadily build a nest egg is to invest in long-term bonds. On maturation of the bond, you'll get back your initial investment and also all the interest which collected over the lifetime of the bond. That's a tremendous amount of money for a 20- or 30-year bond-money that may provide a nice foundation for retirement. And a municipal or government bond is really as safe an investment that you can ever make.
401K and IRA - Lemont, Illinois
Nevertheless, 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 people 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 may be tax-deductible, depending on how much is invested every year.
For more information, please don't hesitate to contact GC Financial Advisors Ltd. at any time and we will be happy to help you! We provide 401K and IRA rollover and review services for individuals in the Lemont, Illinois area.
