Retirement Planning Company – Worth, Illinois
For the people in "Generation X" - defined as folks born between the mid-1960s and the early 1980s - retirement planning sounds like something your parents or other "old people" would do. But you know what? With many "baby boomers" either already in the middle of retirement or viewing it on the horizon, "Generation X" is the next generation of individuals to reach old age. Sure, it is a ways off, but people in their 30s and 40s have to start focusing their investment planning on retirement and making certain they have the type of retirement they are working so hard to enjoy. Below are great tips on planning for retirement:
Retirement life in the future will be different than the retirement in the present day. It will likely be far better in some ways, and worse in some ways. But, the retirement planning for today's workforce needs to be far different than it was in earlier times.
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 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 a longer time of time now than a generation or two ago.
Social Security and Retirement - Worth, Illinois
On the downside, Social Security will probably be a far less dependable income source compared to 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 former employer. Increasingly more, retired people will need to depend on their savings to pay for the expenses of just living and medical health insurance.
With individuals living longer and needing more cash to do so, retirement planning is a vital activity even for those people who are halfway to the common retirement age of sixty-five. It can be an intimidating task to plan for a few decades into the future, particularly with bills, housing costs and home loans to pay right now, but procrastinating won't make it any less complicated.
Putting even just a small amount of money now into a savings account that functions as a retirement savings plan can pay off later. The interest you receive on money in a savings account will allow your preliminary investments to grow to something sustainable. A savings account will provide a place where you can build up capital earning a small interest rate until there is enough to invest in a trusted security which will yield you more like a municipal bond.
Another good approach that can certainly and steadily build a nest egg is to invest in long-term bonds. Upon maturation of the bond, you will get back your initial investment along with all the interest that collected over the life of the bond. That's a tremendous amount of money for a 20- or 30-year bond-money that can provide a good foundation for retirement. And a municipal or government bond is as safe an investment as you can ever make.
401K and IRA - Worth, Illinois
Nevertheless, 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 the people 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 may be tax-deductible, depending on how much is invested annually.
For more info, please do not hesitate to contact GC Financial Advisors Ltd. at any time and we will be happy to help you! We offer 401K and IRA rollover and review services for folks in the Worth, Illinois area.
