Retirement Planning Company – Streamwood, Illinois
For anyone in "Generation X" - defined as folks born between the mid-1960s and also the early 1980s - retirement planning may sound like something your parents or other "old people" might do. But guess what? With many "baby boomers" either already in the midst of retirement or observing it on the horizon, "Generation X" is definitely the next generation of folks to reach retirement. Sure, it is a ways off, but people in their 30s and 40s should start centering their investment planning on retirement and making certain they have the sort of retirement they are working so hard to enjoy. Below are great tips on preparing for retirement:
Retirement life in the foreseeable future will be different than the retirement in the present day. It will be much better in some ways, and worse somewhat. But, the retirement planning for today's labor force must be far different than it was in earlier times.
On the bright side, folks 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 over the average life span in 1990 and more than four years more than the average life span in 1980. Therefore investment planning for retirement has to account for an extended period of time right now than a generation or two in the past.
Social Security and Retirement - Streamwood, Illinois
On the down side, Social Security is going to be a far less dependable source of income compared to now. And also the odds are slim-and getting slimmer every 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 people will have to rely on their savings to pay for the costs of living and medical health insurance.
With individuals living for a longer time and needing more cash to do so, retirement planning is an essential activity even for those who are half way to the standard 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 right now, but procrastinating won't make it any less difficult.
Putting even just a small amount of cash into a savings account that serves as a retirement savings plan can pay off later. 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 little interest rate until there is enough to invest in a reliable security that will yield you more like a municipal bond.
Another good approach that could certainly and gradually build a nest egg is to invest in long-term bonds. On maturation of the bond, you will get back your initial investment as well as 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 could provide a nice foundation for retirement. And a municipal or government bond is really as safe an investment as you can ever make.
401K and IRA - Streamwood, Illinois
Nevertheless, the best approach when it comes to retirement planning would be to put funds 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 might be tax-deductible, depending on how much is invested each year.
For more details, please don't hesitate to contact GC Financial Advisors Ltd. at any time and we will be happy to help you! We offer 401K and IRA rollover and review services for folks in the Streamwood, Illinois area.
