You may consider retirement to be an important phrase in your life. After all, it relieves you of the pressures of having to meet of the impending deadlines, never-ending workloads and carrying out responsibilities in your workplace. However, it is also a time when you cannot rely on a stable remuneration to make ends meet when it comes to maintain your current living standards. Andrew Corbman, a prominent financial advisor from Ashburn and President of ASC Financial, Inc., says to avoid such a situation you need to invest in a lucrative retirement plan.
He goes on the explain that benefits of investing your money in lucrative retirement plan during your working years are as follows:
- Become a recipient of lump sum of money on maturity
Most retirement plans that different insurance companies offer generally provide you with a maturity benefit. This implies that you receive a lump sum of money at the end of the policy’s term depending on the type of retirement scheme you opt to invest in. The sum you receive is usually equivalent to or greater than the total amount of premiums you have to pay when choose to invest in such a policy.
- Provides for your family in the unfortunate event of your demise
Andrew Corbman goes on to say that most retirement plans available in the market have a death benefit clause. This means that in the unfortunate event of your death before the maturity of the retirement policy you opt for, the insurance company pays your family a sufficient amount of money. The sum your dependents receive is usually depends on the amount you pay as premium at regular intervals towards the policy during your lifetime.
- Regular disbursements
When you retire from your place of employment, you monthly salary usually comes to an end. A majority of retirement plans that are available in the market contain a pension scheme feature. If you avail such policy, you receive a regular sum of money that allows you to maintain or improve your present living standards without having to take a day job.
- Liberty to choose the type of portfolio that suits your needs
The market comprises of investors with varying tastes and preferences. Insurance companies introduce various types of retirement plans that suit their needs. While some of these investors prefer to opt for aggressive portfolios in an attempt to maximize their returns, others opt to play it safe and conservative plans.
- Tax advantages
One of the important advantages to opting to invest in a lucrative retirement plan during your working years is that you can avail various tax exemptions and deductions. Only when you become a recipient of the payout on your retirement and on the maturity of such a policy do you become liable to pay taxes.
Andrew Corbman says retirement is a phase in your life that you cannot avoid. However, if you invest your money prudently in a suitable lucrative retirement plan during your working years, you can still maintain your standard of living when leave your place of employment. In addition to this, you can also avail many tax benefits by opting to invest in such a policy.