Retirement Planning Services – Park Ridge, Illinois
For anyone in "Generation X" - described as folks born between the mid-1960s and also the early 1980s - retirement planning sounds 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 midst of retirement or observing it in the near future, "Generation X" is the next generation of folks to reach old age. Sure, it is still a ways off, but those in their 30s and 40s should begin centering their investment planning on retirement and ensuring they've got the type of retirement they are working hard to have. Below are great tips on preparing for retirement:
Retirement life in the foreseeable future will be different than the retirement of today. It'll be far better in some ways, and worse in some ways. However, the retirement planning for today's workforce must be far different than it was in yesteryear.
On the bright side, folks are living longer than ever. As of a short while 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 time of time right now than a generation or two ago.
Social Security and Retiring - Park Ridge, Illinois
On the down side, Social Security is going to be a far less reliable 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 former workplace. Increasingly more, retirees will have to depend on their financial savings to cover the costs of just living and medical health insurance.
With folks living for a longer time and needing more money to do so, retirement planning is a vital activity even for those who are halfway to the common retirement age of sixty-five. It may be a daunting task to plan for a couple of decades into the future, particularly with bills, rents and home loans to pay today, but procrastinating won't make it any less difficult.
Putting even just a little bit of money now into a savings account which serves as a retirement savings plan can pay off in the future. The interest you get on money in a savings account will allow your initial investments to grow to something sustainable. A savings account will give you a place where you can build up capital earning a little interest rate until there's enough to invest in a trusted security that will yield you more like a municipal bond.
Another good approach which could certainly and progressively build a nest egg is to invest in long-term bonds. On maturation of the bond, you'll get back your initial investment along with 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 which could provide a good foundation for retirement. And a municipal or government bond is really as safe an investment as you can ever make.
401K and IRA - Park Ridge, Illinois
Nonetheless, the best approach when it comes to retirement planning is to put cash 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 option, an IRA is the next best thing. Money placed in this account is tax deferred and may 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 will be glad to help you! We provide 401K and IRA rollover and review services for individuals in the Park Ridge, Illinois area.
