Retirement Planning – Winfield, Illinois
For those in "Generation X" - described as folks born between the mid-1960s and also the early 1980s - retirement planning sounds like something your mother and father 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 in the near future, "Generation X" is definitely the next generation of folks to reach old age. Sure, it is a ways off, but those in their 30s and 40s ought to begin centering their investment planning on retirement and making sure they've got the kind of retirement they are working so hard to enjoy. Below are great tips on preparing for retirement:
Retirement life in the future will be different than the retirement right now. It will likely be better in some ways, and worse somewhat. But, the retirement planning for today's labor force must be far different than it was in the past.
On the bright side, folks 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 greater than the average life span in 1990 and more than 4 years more than the average life span in 1980. So investment planning for retirement has to account for an extended period of time now than a generation or two back.
Social Security and Retiring - Winfield, Illinois
On the down side, Social Security will probably be a far less trustworthy income source than it is now. And the odds are slim-and getting slimmer each year-that retirees 20 and 30 years from now will be able to rely on a work pension and enjoy lifetime benefits from their previous workplace. More and more, retirees will need to rely on their financial savings to pay for the costs of living and medical health insurance.
With folks living for a longer time and needing more money 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 can be a daunting task to plan for a few decades into the future, particularly with bills, rents and home loans to pay right now, but procrastinating will not make it any less complicated.
Putting even just a small amount of cash into a savings account which functions as a retirement savings plan can pay off later. 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 small interest rate until there is enough to invest in a reliable security which will yield you more like a municipal bond.
Another good strategy that could surely and steadily build a nest egg is to invest in 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 tremendous amount of money for a 20- or 30-year bond-money that could provide a good 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 - Winfield, Illinois
However, the best approach when it comes to retirement planning would be to put cash in a 401K plan at work or in an IRA opened with an investment house. For those for whom a 401K isn't 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 annually.
For more details, please feel free to contact GC Financial Advisors Ltd. at any time and we will be glad to help you! We offer 401K and IRA rollover and review services for folks in the Winfield, Illinois area.
