Retirement Planning Services – Maywood, Illinois
For the people in "Generation X" - described as people born between the mid-1960s and also the early 1980s - retirement planning may sound like something your mother and father or other "old people" would 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 those in their 30s and 40s need to begin centering their investment planning on retirement and making certain they've got the sort of retirement they are working so hard to enjoy. Here are some tips on planning for retirement:
Retirement life in the future will be different than the retirement right now. It will likely be far better in some ways, and worse in some ways. But, the retirement planning for today's labor force must be far different than it was in days gone by.
On the bright side, folks are living longer than ever. As of a few years 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 four years more than the average life span in 1980. So investment planning for retirement has to account for a longer period of time now than a generation or two ago.
Social Security and Retiring - Maywood, Illinois
On the down side, Social Security will probably be a far less trustworthy source of income compared to now. And the odds are slim-and getting slimmer each 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. More and more, retirees will have to rely on their financial savings to pay for the costs of living and health insurance.
With people living for a longer time and needing extra money 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 a daunting task to plan for a few decades into the future, particularly with bills, housing costs and mortgages to pay today, but procrastinating won't make it any less complicated.
Putting even just a little bit of money now into a savings account which functions as a retirement savings plan can pay off later. The interest you receive 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 build up 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 strategy that may certainly and progressively build a nest egg is to put money into long-term bonds. After 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 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 that you can ever make.
401K and IRA With Retirement - Maywood, Illinois
Nevertheless, the best approach when it comes to retirement planning is to put cash 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 put in this account is tax deferred and may be tax-deductible, depending on how much is invested each 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 Maywood, Illinois area.
