Retirement Planning Company – Oak Forest, Illinois
For anyone in "Generation X" - described as individuals born between the mid-1960s and the early 1980s - retirement planning seems like something your mother and father or other "old people" might do. But you know what? With a lot of "baby boomers" either already in the middle of retirement or observing it in the near future, "Generation X" stands out as the next generation of folks to reach old age. Sure, it is a ways off, but people in their 30s and 40s must begin centering their investment planning on retirement and ensuring they've got the type of retirement they are working so hard to enjoy. Below are great tips on preparing for retirement:
Retirement life in the future will be different than the retirement of today. It will be much better in some ways, and worse in some ways. But, the retirement planning for today's labor force needs to 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 time of time now than a generation or two in the past.
Social Security and Retirement - Oak Forest, Illinois
On the down side, Social Security will probably be a far less dependable source of income than it is now. And also the likelihood is slim-and getting slimmer every 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, retired persons will have to rely on their savings to pay for the costs of just living and medical health insurance.
With people living longer and needing more cash 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 may be a daunting task to plan for a few decades into the future, particularly with bills, rents and mortgages to pay today, but procrastinating won't make it any easier.
Putting even just a little bit of money now into a savings account which works as a retirement savings plan can pay off later on. 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 reliable security which will yield you more like a municipal bond.
Another solid strategy which could certainly 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 along with all the interest which collected over the lifetime of the bond. That's a considerable amount of money for a 20- or 30-year bond-money which could provide a good foundation for retirement. And a municipal or government bond is as safe an investment as you can ever make.
401K and IRA - Oak Forest, Illinois
However, the best approach when it comes to retirement planning would be to put funds 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 into this account is tax deferred and might be tax-deductible, depending on how much is invested every year.
For more information, please feel free to contact GC Financial Advisors Ltd. at any time and we will be glad to help you! We provide 401K and IRA rollover and review services for folks in the Oak Forest, Illinois area.
