Retirement Planning Company – Tinley Park
For the people in "Generation X" - defined as folks born between the mid-1960s and the early 1980s - retirement planning may sound like something your mother and father or other "old people" might do. But you know what? With a lot 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 retirement. Sure, it is still a ways off, but people in their 30s and 40s ought to begin focusing their investment planning on retirement and ensuring they have the kind of retirement they are working hard to have. Here are some tips on preparing for retirement:
Retirement life in the foreseeable future will be different than the retirement right now. It will 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 earlier times.
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 4 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 back.
Social Security and Retirement - Tinley Park
On the downside, Social Security is going to be a far less dependable income source compared to now. And also the odds are 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 previous workplace. More and more, retirees will have to depend on their financial savings to pay for the costs of just living and health insurance.
With individuals living for a longer time and needing extra money to do so, retirement planning is a vital activity even for those people who are halfway to the standard retirement age of sixty-five. It may be an intimidating task to plan for a few decades into the future, especially with bills, housing costs and home loans to pay right now, but procrastinating won't make it any less difficult.
Putting even just a little bit of cash into a savings account which serves 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 supply a place where you can pile up capital earning a small interest rate until there is enough to invest in a trusted security that will yield you more like a municipal bond.
Another good strategy which could surely and gradually build a nest egg is to invest in long-term bonds. After maturation of the bond, you'll get back your initial investment along with all the interest which collected over the life of the bond. This is a considerable amount of money for a 20- or 30-year bond-money which could provide a great foundation for retirement. And a municipal or government bond is as safe an investment as you can ever make.
401K and IRA - Tinley Park
However, the best approach when it comes to retirement planning is to put funds in a 401K plan at work or in an IRA opened with an investment house. For those 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 details, please don't hesitate to contact GC Financial Advisors Ltd. at any time and we'll be glad to help you! We provide 401K and IRA rollover and review services for individuals in the Tinley Park area.
