Retirement Planning Services – Prospect Heights, IL
For the people in "Generation X" - defined as individuals born between the mid-1960s and also the early 1980s - retirement planning seems like something your mother and father or other "old people" might do. But guess what? With lots of "baby boomers" either already in the midst of retirement or observing 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 must begin focusing their investment planning on retirement and ensuring they've got the sort of retirement they are working so hard to enjoy. Here are some tips on preparing for retirement:
Retirement life in the future will be different than the retirement of today. It will likely be far better in some ways, and worse somewhat. But, the retirement planning for today's workforce must be far different than it was in yesteryear.
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 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 period of time now than a generation or two ago.
Social Security and Retirement - Prospect Heights, IL
On the downside, Social Security will likely be a far less dependable income source 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 former employer. More and more, retirees will need to rely on their financial savings to cover the expenses of living and medical health insurance.
With people living longer and needing extra money to do so, retirement planning is a vital activity even for those who are halfway to the standard retirement age of 65. It can be a daunting task to plan for a couple of decades into the future, particularly 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 that 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 preliminary investments to grow to something sustainable. A savings account will supply a place where you can accumulate capital earning a little 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 can surely and progressively build a nest egg is to invest in long-term bonds. Upon maturation of the bond, you'll get back your initial investment and also all the interest that collected over the life of the bond. This is a tremendous 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 as you can ever make.
401K and IRA With Retirement - Prospect Heights, IL
Nonetheless, the best approach when it comes to retirement planning is to put cash in a 401K plan at work or in an IRA opened with an investment house. For people for whom a 401K is not 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 annually.
For more info, 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 folks in the Prospect Heights, IL area.
