Retirement Planning – Lyons
For anyone in "Generation X" - defined as folks born between the mid-1960s and also the early 1980s - retirement planning sounds like something your parents or other "old people" might do. But guess what? With many "baby boomers" either already in the midst of retirement or looking at it on the horizon, "Generation X" is definitely the next generation of individuals to reach retirement. Sure, it's still a ways off, but people in their 30s and 40s have to start focusing their investment planning on retirement and making certain they have the kind 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 in the present day. It'll 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 yesteryear.
On the bright side, individuals are living longer than ever. As of not too long 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. So investment planning for retirement has to account for a longer period of time right now than a generation or two ago.
Social Security and Retirement - Lyons
On the downside, Social Security will likely be a far less reliable income source 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 previous workplace. More and more, retirees will have to depend on their financial savings to pay for the costs of living and medical health insurance.
With individuals 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 may be an intimidating task to plan for a couple of decades into the future, particularly with bills, rents and mortgages to pay right now, but procrastinating won't make it any less difficult.
Putting even just a little bit of cash into a savings account which functions as a retirement savings plan can pay off later. 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 accumulate 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 good strategy that could certainly and steadily build a nest egg is to put money into long-term bonds. Upon maturation of the bond, you will get back your initial investment and also all the interest which collected over the life of the bond. This is a considerable amount of money for a 20- or 30-year bond-money that could provide a good foundation for retirement. And a municipal or government bond is really as safe an investment that you can ever make.
401K and IRA With Retirement - Lyons
However, the best approach when it comes to retirement planning is 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 is not a retirement planning choice, 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 every year.
For more information, please do not hesitate 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 Lyons area.
