“Do you know how much it will take in retirement to maintain your current lifestyle? Most people do not. They do not take into account increased medical expenses and other expenses that are being covered by their employer,” said Gurdayal Singh, a financial advisor. “Even if you have a pension through your employer, do you know what and how much it covers?”
Mr. Singh said investing in a pension is literally investing in your future. He said a good pension plan will make sure your golden years are lived in as much comfort as you like.
“They key to this is pension maximization. You have to get returns on your investment that will let you earn enough to make a decent pension,” he said. “Do you have a retirement plan, a pension fund that you contribute to? How much is it earning? Is that enough or do you need more?”
Pensions can be roughly grouped into categories based on the amount of risk, and potential return the investor is willing to receive.
Low risk pension plans are generally very secure. They have a modest return year over year. A good example of a low-risk pension plans a savings account and US bonds. Losing money is rare, but outperforming the economy by a wide margin is also rare.
As the element of risk goes up, the amount of return can also go up. The risk of losing money also goes up. These pension plans, over time should do better than the economy.
With the highest potential return comes the highest amount of risk. The chance for losing money is greatest here, but the chance for the highest returns also exists here. “I recommend this for people who are just entering adulthood and starting their careers. With retirement decades away, they can afford a higher risk,” Mr. Singh said.
Company Name: Benefit Consultant Inc
Contact Person: Gurdayal Singh
Address:14726 Ramona Ave. # 410
State: CA 91710
Country: United States