Retirement Planning Company – Orland Park
For those in "Generation X" - defined as individuals born between the mid-1960s and the early 1980s - retirement planning sounds like something your mother and father or other "old people" might do. But you know what? With many "baby boomers" either already in the middle of retirement or observing it in the near future, "Generation X" is the next generation of folks to reach retirement. Sure, it is still a ways off, but those in their 30s and 40s have to begin centering their investment planning on retirement and making sure they have the sort of retirement they are working so hard to have. Below are great tips on planning for retirement:
Retirement life in the foreseeable future will be different than the retirement right now. It will be far 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 earlier times.
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 - Orland Park
On the down side, Social Security will probably be a far less trustworthy source of income than it is now. And the odds are 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 employer. More and more, retirees will need to rely on their financial savings to cover the costs of just living and medical 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 half way to the common retirement age of 65. It can be an intimidating task to plan for a couple of decades into the future, especially with bills, rents and home loans to pay today, but procrastinating will not make it any less difficult.
Putting even just a little bit of cash into a savings account which functions as a retirement savings plan can pay off later on. The interest you receive on money in a savings account will allow your preliminary investments to grow to something sustainable. A savings account will give you a place where you can acquire capital earning a small interest rate until there is enough to invest in a reliable security which will yield you more like a municipal bond.
Another good strategy that may certainly and steadily build a nest egg is to invest in long-term bonds. On maturation of the bond, you will get back your initial investment along with 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 may provide a great foundation for retirement. And a municipal or government bond is really as safe an investment that you can ever make.
401K and IRA - Orland Park
Nonetheless, the best approach when it comes to retirement planning would be to put cash in a 401K plan at work or in an IRA opened with an investment house. For those for whom a 401K is not a retirement planning choice, an IRA is the next best thing. Money placed in this account is tax deferred and might 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'll be glad to help you! We offer 401K and IRA rollover and review services for folks in the Orland Park area.
