Retirement Planning Services – Markham, Illinois
For those in "Generation X" - described as individuals born between the mid-1960s and the early 1980s - retirement planning may sound like something your parents or other "old people" would do. But guess what? With lots of "baby boomers" either already in the middle of retirement or viewing it on the horizon, "Generation X" stands out as the next generation of people to reach retirement. Sure, it's still a ways off, but people in their 30s and 40s will need to begin centering their investment planning on retirement and ensuring they've got the sort of retirement they are working hard to have. Below are great tips on planning for retirement:
Retirement life in the future will be different than the retirement of today. It will be better in some ways, and worse somewhat. However, the retirement planning for today's labor force needs to be far different than it was in earlier times.
On the bright side, individuals 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. Therefore investment planning for retirement has to account for a longer time of time right now than a generation or two in the past.
Social Security and Retiring - Markham, Illinois
On the down side, Social Security will likely be a far less reliable source of income than it is now. And also the odds are 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 employer. More and more, retired people will have to rely on their savings to cover the expenses of just living and medical health insurance.
With folks living for a longer time and needing extra money to do so, retirement planning is an essential activity even for those people who are half way to the standard retirement age of sixty-five. It can be an intimidating task to plan for a few decades into the future, especially with bills, housing costs and mortgages to pay today, but procrastinating will not make it any less difficult.
Placing even just a little bit of cash into a savings account which works 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 supply 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 good strategy that may surely and progressively build a nest egg is to put money into 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 good foundation for retirement. And a municipal or government bond is really as safe an investment that you can ever make.
401K and IRA - Markham, Illinois
Nonetheless, 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 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 info, please do not hesitate to contact GC Financial Advisors Ltd. at any time and we will be happy to help you! We offer 401K and IRA rollover and review services for individuals in the Markham, Illinois area.
