Retirement Planning Services – Streamwood, IL
For those in "Generation X" - described 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 lots of "baby boomers" either already in the midst of retirement or looking at it in the near future, "Generation X" will be the next generation of individuals to reach retirement. Sure, it is a ways off, but people in their 30s and 40s will need to start focusing their investment planning on retirement and ensuring they have the type of retirement they are working hard to enjoy. Here are some tips on planning for retirement:
Retirement life in the foreseeable future will be different than the retirement right now. It will be better in some ways, and worse somewhat. But, the retirement planning for today's workforce 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 more than 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 a longer period of time now than a generation or two ago.
Social Security and Retiring - Streamwood, IL
On the downside, Social Security will probably be a far less trustworthy income source compared to now. And the likelihood is 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 previous workplace. More and more, retirees will need to rely on their financial savings to pay for the expenses of living and medical health insurance.
With individuals living longer and needing more money to do so, retirement planning is a vital activity even for those people who are half way to the standard retirement age of 65. It could be an intimidating task to plan for a couple of decades into the future, especially with bills, rents and home loans to pay today, but procrastinating won't make it any less complicated.
Placing even just a small amount of cash into a savings account which functions as a retirement savings plan can pay off in the future. The interest you receive 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 trusted security that will yield you more like a municipal bond.
Another solid approach that may surely and steadily build a nest egg is to put money into long-term bonds. After maturation of the bond, you'll get back your initial investment along with all the interest which collected over the lifetime of the bond. That's a significant amount of money for a 20- or 30-year bond-money that may provide a nice foundation for retirement. And a municipal or government bond is really as safe an investment that you can ever make.
401K and IRA - Streamwood, IL
Nonetheless, the best approach when it comes to retirement planning is to put money in a 401K plan at your workplace or in an IRA opened with an investment house. For those 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 every 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 individuals in the Streamwood, IL area.
