Retirement Planning Company – Springfield, IL
For anyone in "Generation X" - described as people 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 guess what? With many "baby boomers" either already in the midst of retirement or looking at it on the horizon, "Generation X" will be the next generation of men and women to reach old age. Sure, it is still a ways off, but those in their 30s and 40s need to begin centering their investment planning on retirement and making certain they've got the type of retirement they are working so hard to have. Below are great tips on preparing for retirement:
Retirement life in the future will be different than the retirement of today. It will be far better in some ways, and worse in some ways. But, the retirement planning for today's workforce must be far different than it was in earlier times.
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 more than 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 back.
Social Security and Retiring - Springfield, IL
On the down side, Social Security is going to be a far less dependable income source than it is now. And also 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 employer. More and more, retired persons will need to depend on their savings to cover the expenses of just living and medical health insurance.
With individuals living longer and needing extra money to do so, retirement planning is an essential activity even for those who are half way to the common retirement age of 65. It may be an intimidating 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 complicated.
Putting even just a little bit of money now 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 initial investments to grow to something sustainable. A savings account will offer a place where you can pile up capital earning a little interest rate until there is enough to invest in a reliable security that will yield you more like a municipal bond.
Another solid approach that can surely and progressively 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 that collected over the lifetime of the bond. This is a tremendous amount of money for a 20- or 30-year bond-money that can provide a great foundation for retirement. And a municipal or government bond is as safe an investment that you can ever make.
401K and IRA - Springfield, IL
Nonetheless, the best approach when it comes to retirement planning would be to put money in a 401K plan at your workplace or in an IRA opened with an investment house. For the people for whom a 401K is not a retirement planning choice, an IRA is the next best thing. Money put in this account is tax deferred and may be tax-deductible, depending on how much is invested annually.
For more information, please feel free 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 individuals in the Springfield, IL area.
