Retirement Planning Services – Libertyville, Illinois
For the people in "Generation X" - described as individuals born between the mid-1960s and also the early 1980s - retirement planning sounds 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 observing it on the horizon, "Generation X" will be the next generation of men and women to reach retirement. Sure, it is still a ways off, but people in their 30s and 40s should begin focusing their investment planning on retirement and ensuring they've got the type 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 far better in some ways, and worse in some ways. However, the retirement planning for today's labor force needs to be far different than it was in days gone by.
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 over 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 ago.
Social Security and Retirement - Libertyville, Illinois
On the down side, Social Security will probably be a far less reliable income source compared to now. And 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 workplace. More and more, retirees will have to rely on their savings to cover the costs of living and medical health insurance.
With folks living longer and needing additional money to do so, retirement planning is an essential activity even for those people who are halfway to the common retirement age of 65. It could be a daunting task to plan for a few decades into the future, especially with bills, rents and home loans to pay right now, but procrastinating will not make it any less difficult.
Placing even just a small amount of cash into a savings account that serves 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 pile up capital earning a little interest rate until there's enough to invest in a reliable security which will yield you more like a municipal bond.
Another solid strategy that may 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 and also all the interest that collected over the life of the bond. This is a significant amount of money for a 20- or 30-year bond-money that may 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 - Libertyville, Illinois
However, the best approach when it comes to retirement planning would be to put money 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 into this account is tax deferred and may be tax-deductible, depending on how much is invested annually.
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 offer 401K and IRA rollover and review services for folks in the Libertyville, Illinois area.
