Retirement Planning Services – Minooka, Illinois
For the people 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" would do. But you know what? With lots of "baby boomers" either already in the middle of retirement or viewing it in the near future, "Generation X" is 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 start centering their investment planning on retirement and making sure they have the sort of retirement they are working so hard to enjoy. Below are great tips on preparing for retirement:
Retirement life in the foreseeable future will be different than the retirement in the present day. It'll be 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, people 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 over the average life span in 1990 and more than four years more than the average life span in 1980. Therefore investment planning for retirement has to account for a longer period of time now than a generation or two ago.
Social Security and Retirement - Minooka, Illinois
On the down side, Social Security will likely be a far less dependable 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 now will be able to rely on a work pension and enjoy lifetime benefits from their former employer. More and more, retired people will need to rely on their savings to pay for the expenses of just living and health insurance.
With folks living longer and needing additional money to do so, retirement planning is a vital activity even for those people who are halfway to the standard retirement age of 65. It can be an intimidating task to plan for a few decades into the future, especially 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 works 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 build up 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 can surely and progressively build a nest egg is to invest in long-term bonds. After 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 significant amount of money for a 20- or 30-year bond-money that can provide a nice foundation for retirement. And a municipal or government bond is as safe an investment that you can ever make.
401K and IRA - Minooka, Illinois
Nevertheless, 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 the people for whom a 401K isn't a retirement planning choice, an IRA is the next best thing. Money put into this account is tax deferred and might be tax-deductible, depending on how much is invested each year.
For more information, please don't hesitate to contact GC Financial Advisors Ltd. at any time and we'll be glad to help you! We provide 401K and IRA rollover and review services for folks in the Minooka, Illinois area.
