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Advantages of Enrolling in a Retirement Plan

Personal_Finance / Pensions & Retirement Feb 27, 2020 - 10:25 AM GMT

By: Submissions

Personal_Finance

At some point in life, we all wish to have a happy old age ending in the countryside, free of city hassles and full of tranquility. Retiring is inevitable, and the earlier you start making preparations for the same, the better. Don't you want to have a peaceful home in the woods where your grandchildren would play later? Well, you can buy a home with your current earnings, but how do you ensure financial independence once you hang the boots? Remember, you'll still have bills to pay, and your children may not be around to help at all times. Moreover, they are probably looking up to you and wish they could be like daddy. So, either way, you have to set the pace, you lead first by example, then they'll follow.


On that note, what are the benefits that you gain from a prudent retirement investing option? Here are some of the advantages of enrolling in a retirement plan as early as possible:

  • Be on the same page with most people

Most employees, if not everyone, are preparing for the old-age days ahead by enrolling for a retirement investment plan. In fact, even self-employed individuals have insurance firms or governmental pensionable schemes to help them plan and secure their retirement plans. Don't you think you'll seem out of the ordinary when you have nothing to show when you finally hang the boots? While most of your peers will be living in mansions outside the town, do you still want to struggle with menial jobs in the city? Well, enrolling for a retirement plan not only saves your future but also keeps you at par with what everyone is doing. Later on, you’ll really appreciate it when you sit on that local joint to sip some booze, having in mind that you have a place to call your home. And if you have a super spouse, they are probably enrolled in some retirement plan, and it would be best if both of you are on the same level.

  • Have peace of mind

It is common to suffer from stress and depression when your working age is quickly rounding up on you. For the record, you must also know that depression or stress is not good health-wise, and there are known cases of people who have succumbed to the same. Enrolling for a formidable retirement plan gives you a peace of mind always as you are sure of a sweet ending. Remember, when you register earlier, you'll enjoy greater benefits that may even see you starting that company that was once your dream when you began your career. Several successful companies have grown into big corporations, and they all started with shareholders investing their retirement benefits.

  • Motivation to work

There is nothing that motivates a man to work as knowing that he is doing so for the betterment of the future. As human beings, it is reasonable to, at times, feel like all your work efforts aren't giving as much as you would want. What about knowing that you'll have financial freedom even in the next fifty years from now? Enrolling in a retirement plan gives you the reason to wake up and make that extra dime for saving. Moreover, if you stage up an improved performance at work, you may just land that promotion you've been wishing for!

  • Collateral

Do you know that you can use your retirement benefit asset as collateral to seek for a loan or mortgage? Well, you can decide to take up a loan and maximize your investments so that you can have greater retirement benefits in the future. Remember, the more income you generate, the more money you'll likely save. Moreover, other investments will bring additional disposable income to take care of family needs so that you don't strain much in your current job. As for the mortgage, having more than one property defines you more than just a man. Don't they say successful men have more than 11 sources of income? Secure that business loan using your retirement benefit assets as collateral, and you'll not regret it.

  • Prudent pre-retirement decisions

Once you start saving for your retirement plan, you'll change almost every perspective in life, including how you make financial decisions. It is so because you'll have a bigger picture that influences every decision you make, especially on expenditure. Moreover, when some amount is deducted, you'll always deduce ways of saving as much as possible. Remember, as a wise person, who is looking forward to financial security at not only in retirement but at the moment too, saving is paramount. Start saving for your retirement plan, and it will inculcate the saving discipline in you and influence how you view financial matters.

  • Tax benefits

Do you know that payment deduction channeled to your retirement savings plans are tax-free? In fact, even the interest that accrues on the same is tax-free until that day that you finally retire, and you want to withdraw. If you don't withdraw, there is no tax imposed. It is high time you take advantage of the tax benefits that come with enrolling for a retirement plan. To maximize your retirement gains, you can delay the social security fund for a year or five. What do you think a 6% interest per annum will be like, especially after spending more than thirty years saving? This is an opportunity that no one should miss if they have their future at heart.

  • Legacy

When saving for a retirement plan, you are not only doing it for your gains, but also for the financial well-being of your loved ones or even a charity organization that you've been dreaming of starting. Do you want to impact people's lives? Do you want your children to have upper edge opportunities that were never accorded to you? Well, you already have a way out to set for that legacy when you enroll for a retirement plan today! Remember, even in the after-life, your legacy will still live on, especially if you groomed a responsible heir who will see it through the generations to come. Who knows if a family dynasty lies within your hands? Plan for that retirement and live the legacy.

By LS

© 2020 Copyright LS - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


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