Retirement Planning Services – Wauconda, IL
For anyone in "Generation X" - defined as people born between the mid-1960s and also the early 1980s - retirement planning seems like something your mother and father or other "old people" might do. But you know what? With lots of "baby boomers" either already in the middle of retirement or viewing it in the near future, "Generation X" stands out as the next generation of people to reach old age. Sure, it is a ways off, but people in their 30s and 40s need to begin focusing their investment planning on retirement and ensuring they have the type of retirement they are working so hard to have. Here are some tips on planning for retirement:
Retirement life in the future will be different than the retirement of today. It will be much better in some ways, and worse somewhat. However, the retirement planning for today's workforce 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 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 an extended period of time right now than a generation or two back.
Social Security and Retirement - Wauconda, IL
On the down side, Social Security is going to be a far less dependable 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 employer. More and more, retired people will have to depend on their savings to pay for the costs of living and health insurance.
With people living longer and needing extra money to do so, retirement planning is an essential activity even for those who are halfway to the common retirement age of sixty-five. It could be a daunting task to plan for a couple of decades into the future, particularly with bills, housing costs and home loans to pay right now, but procrastinating won't make it any less difficult.
Putting even just a small amount of money now into a savings account that serves as a retirement savings plan can pay off later on. The interest you get on money in a savings account will allow your initial investments to grow to something sustainable. A savings account will provide a place where you can accumulate 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 solid strategy that can certainly and steadily 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. That's a significant 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 as you can ever make.
401K and IRA - Wauconda, IL
Nonetheless, the best approach when it comes to retirement planning would be to put money 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 placed in this account is tax deferred and may be tax-deductible, depending on how much is invested every year.
For more info, please don't hesitate to contact GC Financial Advisors Ltd. at any time and we'll be happy to help you! We offer 401K and IRA rollover and review services for individuals in the Wauconda, IL area.
