Retirement Planning Company – Westmont
For those in "Generation X" - described as individuals born between the mid-1960s and the early 1980s - retirement planning seems like something your parents or other "old people" would do. But you know what? With a lot of "baby boomers" either already in the middle of retirement or observing it on the horizon, "Generation X" is definitely the next generation of folks to reach retirement. Sure, it's still a ways off, but people in their 30s and 40s must start centering their investment planning on retirement and making certain they've got the type of retirement they are working so 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'll be better in some ways, and worse somewhat. However, the retirement planning for today's workforce must be far different than it was in days gone by.
On the bright side, folks 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 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 a longer time of time right now than a generation or two in the past.
Social Security and Retiring - Westmont
On the down side, Social Security is going to be a far less dependable income source than it is now. And 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 former workplace. More and more, retired persons will need to rely on their savings to pay for the expenses of just living and health insurance.
With folks living for a longer time and needing more cash to do so, retirement planning is an essential activity even for those people who are halfway to the standard retirement age of sixty-five. It could be an intimidating 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.
Placing even just a little bit 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 accumulate capital earning a little interest rate until there's enough to invest in a trusted security that will yield you more like a municipal bond.
Another good approach that may surely and steadily build a nest egg is to put money into long-term bonds. Upon 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 considerable amount of money for a 20- or 30-year bond-money that may provide a great foundation for retirement. And a municipal or government bond is really as safe an investment that you can ever make.
401K and IRA With Retirement - Westmont
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 those for whom a 401K isn't a retirement planning choice, 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 do not hesitate to contact GC Financial Advisors Ltd. at any time and we'll be happy to help you! We provide 401K and IRA rollover and review services for folks in the Westmont area.
