Retirement Planning Company – Westchester, IL
For those in "Generation X" - described as individuals born between the mid-1960s and the early 1980s - retirement planning sounds like something your parents or other "old people" would do. But guess what? With a lot of "baby boomers" either already in the middle of retirement or observing it on the horizon, "Generation X" will be the next generation of people to reach retirement. Sure, it's still a ways off, but people in their 30s and 40s should start focusing their investment planning on retirement and making certain they have the sort of retirement they are working hard to have. 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 better in some ways, and worse in some ways. However, the retirement planning for today's labor force needs to be far different than it was in the past.
On the bright side, people 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 now than a generation or two ago.
Social Security and Retiring - Westchester, IL
On the down side, Social Security is going to be a far less dependable source of income compared to now. And also the likelihood is slim-and getting slimmer every year-that retirees 20 and 30 years from now will be able to rely on a work pension and enjoy lifetime benefits from their former employer. More and more, retired persons will have to depend on their financial savings to cover the expenses of just living and medical health insurance.
With individuals living longer 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 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 small amount of cash into a savings account which 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 offer a place where you can acquire capital earning a little interest rate until there is enough to invest in a reliable security which will yield you more like a municipal bond.
Another good approach which could certainly and gradually build a nest egg is to put money into long-term bonds. On maturation of the bond, you'll get back your initial investment and also all the interest which collected over the life of the bond. That's a considerable amount of money for a 20- or 30-year bond-money which 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 - Westchester, IL
Nevertheless, 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 put into this account is tax deferred and might be tax-deductible, depending on how much is invested every year.
For more information, please don't hesitate to contact GC Financial Advisors Ltd. at any time and we will be glad to help you! We provide 401K and IRA rollover and review services for folks in the Westchester, IL area.
