Retirement Planning – Mount Prospect, Illinois
For those in "Generation X" - described as individuals 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 lots of "baby boomers" either already in the middle of retirement or looking at it in the near future, "Generation X" is the next generation of men and women to reach retirement. Sure, it is a ways off, but those in their 30s and 40s really need to start focusing their investment planning on retirement and making sure they have the type of retirement they are working so hard to have. Here are some tips on planning for retirement:
Retirement life in the foreseeable future will be different than the retirement in the present day. It will likely be far better in some ways, and worse somewhat. But, the retirement planning for today's labor force needs to be far different than it was in days gone by.
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 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 period of time right now than a generation or two back.
Social Security and Retiring - Mount Prospect, Illinois
On the down side, Social Security will likely be a far less dependable source of income than it is 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 previous employer. More and more, retired persons will have to depend on their financial savings to pay for the expenses of just living and health insurance.
With individuals living for a longer time and needing more money to do so, retirement planning is a vital activity even for those who are half way to the common retirement age of sixty-five. It could be an intimidating task to plan for a couple of decades into the future, especially with bills, rents and home loans to pay right now, but procrastinating won't make it any easier.
Putting 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 small interest rate until there is enough to invest in a trusted security that will yield you more like a municipal bond.
Another solid approach that could surely and gradually build a nest egg is to put money into long-term bonds. After maturation of the bond, you'll get back your initial investment as well as 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 nice foundation for retirement. And a municipal or government bond is as safe an investment as you can ever make.
401K and IRA - Mount Prospect, Illinois
However, the best approach when it comes to retirement planning would be to put money 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 option, an IRA is the next best thing. Money put in this account is tax deferred and might be tax-deductible, depending on how much is invested each year.
For more info, please do not hesitate to contact GC Financial Advisors Ltd. at any time and we'll be happy to help you! We provide 401K and IRA rollover and review services for individuals in the Mount Prospect, Illinois area.
