| Along with many things to do in life, it is very | | | | future will be determined. In case you are not able |
| important to plan your retirement. A retirement | | | | to figure out how you will proceed further with |
| plan is so important that it creates a deep future | | | | your retirement plans, you should take up the |
| impact. In case you have not yet started thinking | | | | services of a financial advice. |
| about your retirement, now is the time to think! | | | | But just like others, retirement funds too have |
| One should have sufficient amount of savings to | | | | advantages as well as disadvantages: |
| ensure security for their retirement. As it is said, | | | | Advantages: |
| it is never too late to start something good, so | | | | • Present is the best time to start saving for |
| without wasting any time, you should immediately | | | | your future. As far as retirement funds are |
| start saving. | | | | concern they provide you with financial security. |
| There are many things to consider while thinking | | | | • After retirement, savings acts as a cushion |
| on retirement plan and thus it should be carefully | | | | during the time of emergency, unforeseen |
| handled. Financial investing may be set up by the | | | | circumstances, death, living expenses, debt or any |
| insurance companies, employers, employer | | | | illness. |
| associations, the government and trade unions. In | | | | • Proper planning of your retirement will |
| the United States of America, such plans are | | | | ensure fulfilling up your daily needs such as: food |
| usually termed as 'pension plans'. Planning your | | | | bills, grocery and so on. |
| retirement is referred as defined contribution or | | | | • Another main advantage of such type of |
| defined benefit. | | | | retirement fund is that a life insurance premium |
| Based on fixed formula, retirement plan | | | | provides taxable benefits. And the premiums are |
| guarantees certain payout during the time of | | | | tax deductible! |
| retirement. We all know, no employees are | | | | Disadvantages: |
| allowed to work after a certain age. Therefore, a | | | | • Employees must give a part of his salary as |
| time comes when an individual no longer gets a | | | | a share of premium. |
| steady income from his/her job. In order to get | | | | • High set up and administrative costs are the |
| regular income even after retirement, a | | | | main disadvantages. |
| retirement plan is quite necessary as it plays a | | | | • One may experience decrease in value due |
| great supporting role. It helps in fulfilling our day to | | | | to insufficient investment performance. |
| day needs such as food expenses, health | | | | Taking a serious decision on retirement is an |
| insurance, mortgage payments and many more. | | | | important issue for small business owners and |
| Quite often such kind of financial investing plans | | | | self-employed persons. For the employees of |
| require involvement of both the employee and | | | | large companies, they can take part in an |
| the employer to contribute money to a fund. | | | | investment program or pension plan offered by |
| From ensuring future security and income, it also | | | | their company. Therefore, one should start |
| features as a tax free accumulation of a fund. It | | | | figuring out the various financial strategies for |
| is up to you how you furnish your future. | | | | future as early as possible. |
| Depending on your present needs, your goals for | | | | |