Does your company only offer you retirement plans like the 401(k)? Well, this means that you are rather limited when it come to having different investment options. You should not worry. There are many different employer retirement plan options to explore. Let’s start off with the one with least risk.
You see, there are “no” disadvantages of 401 k plans, as compared to old fashioned pension plans, at least from the company’s perspective. Since, you’ll probably never have the option of choosing a standard pension plan, there’s no reason to look at the advantage/disadvantage of one of those plans.
Or this scenario. George worked for the same company for 40 years and had a nice pension coming when he retired. Unfortunately, only 6 months after retiring George passed away.
If you are looking for a retirement plan or retirement scheme for the day you will retire you can have them in various offices that are located in your place. They are also much known when it comes to advertisements and commercials that are found in televisions. There are also other companies that offer you with a great or a wide variety and options when it comes to the different schemes that are available. There are certain financial advisers also that can teach how to become an effective investor and retiree pensioner once you decide to be one.
While you may think you have saved enough, here are some statistics that may make you think otherwise. More than 50% of workers in their 30s have employee benefits packages birmingham al that have a value of $17,000. When they reach their 40s, 60% or workers have accounts with a $40,000 value. After the age of 55, most people have less than $100,000 in a retirement account. These savings are far from adequate, especially when you consider that you will be withdrawing 4 to 5% of the amount each year when you retire. To make matters worse, most retired individuals receive most of their income from Social Security, which averages at $1,150 per month. That is barely enough to live on.
The annuity retirement plan was too boring for him and he turned it down in favor of chasing higher returns in the market. Shortly after, the stocks that he chose to invest in took a turn for the worst along with the rest of the market. His $700,000 in retirement money dropped to about $450,000. He was pulling out 7% per year in income before which was almost $50,000 and now taking out $50,000 was over 10% of what he had left. It was a bad time for him and a lot of other investors that took the same kind of risks with their retirement nest eggs. From that point it is impossible to recover your original investment without a major decrease in income. If he would have dropped to $25,000 per year in income he may have made it.
If all of this seems overwhelming and you feel far behind, don’t get discouraged. I want to let you know that it is also never too late! As I mentioned earlier, we maximize our options the earlier we start, but we can live enjoyable lives in retirement, even if we don’t have our plan in place early. It just takes some reflection and thoughtful strategies.