Retirement Planning Services – Techny
For those in "Generation X" - described as folks born between the mid-1960s and also the early 1980s - retirement planning may sound like something your parents or other "old people" would do. But you know what? With lots of "baby boomers" either already in the middle of retirement or looking at 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 those in their 30s and 40s have to start focusing their investment planning on retirement and making sure they've got the sort of retirement they are working so hard to enjoy. Below are great tips on planning for retirement:
Retirement life in the foreseeable future will be different than the retirement of today. It will likely be much better in some ways, and worse in some ways. However, the retirement planning for today's labor force must be far different than it was in the past.
On the bright side, people are living longer than ever. As of not too long 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. So investment planning for retirement has to account for a longer time of time right now than a generation or two ago.
Social Security and Retirement - Techny
On the downside, Social Security will probably be a far less trustworthy income source than it is 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 previous workplace. More and more, retired people will need to depend on their savings to cover the expenses of just living and medical health insurance.
With folks living longer and needing additional money to do so, retirement planning is an essential activity even for those people who are half way to the common retirement age of sixty-five. It can be an intimidating task to plan for a few decades into the future, especially with bills, housing costs and home loans to pay today, but procrastinating will not make it any less difficult.
Placing even just a small amount 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 initial investments to grow to something sustainable. A savings account will offer a place where you can build up capital earning a small interest rate until there's enough to invest in a reliable security which will yield you more like a municipal bond.
Another good approach that may surely and gradually build a nest egg is to put money into long-term bonds. Upon maturation of the bond, you'll get back your initial investment as well as all the interest that 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 as you can ever make.
401K and IRA - Techny
Nonetheless, 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 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 may 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 individuals in the Techny area.
