Retirement Planning – Shorewood, IL
For the people in "Generation X" - defined as individuals born between the mid-1960s and the early 1980s - retirement planning may sound like something your mother and father or other "old people" would do. But guess what? With many "baby boomers" either already in the middle of retirement or viewing it on the horizon, "Generation X" stands out as the next generation of individuals to reach old age. Sure, it's still a ways off, but people in their 30s and 40s ought to begin focusing their investment planning on retirement and making sure they've got the sort of retirement they are working hard to enjoy. Below are great tips on planning for retirement:
Retirement life in the foreseeable future will be different than the retirement in the present day. It will be far better in some ways, and worse somewhat. However, the retirement planning for today's labor force needs to be far different than it was in the past.
On the bright side, people 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 4 years more than the average life span in 1980. Therefore investment planning for retirement has to account for an extended period of time now than a generation or two ago.
Social Security and Retiring - Shorewood, IL
On the downside, Social Security will likely be a far less reliable source of income compared to now. And the odds are slim-and getting slimmer each 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. Increasingly more, retirees will need to depend on their savings to pay for the expenses of living and medical health insurance.
With people living longer and needing additional money to do so, retirement planning is a vital activity even for those who are halfway to the regular retirement age of 65. It may be an intimidating task to plan for a few decades into the future, especially with bills, rents and home loans to pay today, but procrastinating will not make it any less complicated.
Putting even just a small amount of cash into a savings account which works 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 provide a place where you can accumulate 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 good strategy which could certainly and steadily build a nest egg is to put money into long-term bonds. Upon maturation of the bond, you will get back your initial investment and also all the interest which collected over the lifetime 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 as safe an investment as you can ever make.
401K and IRA With Retirement - Shorewood, IL
However, 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 the people for whom a 401K is not a retirement planning option, 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 each year.
For more information, please do not hesitate to contact GC Financial Advisors Ltd. at any time and we will be happy to help you! We provide 401K and IRA rollover and review services for folks in the Shorewood, IL area.
