Retirement Planning is considered as one of the most important aspects in the life. Especially, people who are earning low income must worry more about the retirement planning. This article provides you some of the basic information on the retirement planning programs available in the market for people who fall under low income cadre.
Most of the less paid workers may not be able invest money on real estate as it needs a lot of money initially. Still, there are many other retirement programs available in the market for low paid workers.
Roth IRA is one of the best available options. You can constantly invest money throughout the year in this investment tool. There is a yearly upper limit for this investment. Now it is $5,000 if you are below the age of 49. You can invest this money in stocks or bonds which are very low risk investment tools in the market. The returns you earn on this income will be directly deposited in your IRA account. Once you reach the retirement age, you can withdraw all the money without much bothering about any taxes. This is very secure and safe plan for the people who are low paid employees. Make sure you take out some amount of money from your monthly income so that you will have better opportunity to gather more money.
Mutual Funds are also one of the best options for low income people. Mutual Fund is nothing but colleting money from various individuals and invests them in wide range of portfolio such as bonds and stocks etc available in the market. Everything will be managed by the professionals here. They will assure you some constant return on your investment. The money will be safe and secure if you go ahead and invest in some of the government owned mutual funds. They assure you the constant ROI.
Possibly, try to participate in the Initial Public Offering (IPO) issued by many major companies. Evaluate the company well and try to keep the money for long-term so that the return on investment will be augmented. Of course, there is a bit of risk involved in this option but you can save decent money with the help of IPO's.
Saving money for the retirement age is no more difficult for low paid employees. There are always some tools available in the market. The only thing needed is the meticulous planning. You need to plan and take some money out of your salary every month and try to invest in any of the above options to realize the best results.
If you are unable to plan yourself, consult any financial consultant who is very close to you and let him plan for you. Understand the process of investment with the help of the consultant and plan for your retirement. Ensure you are in touch with the financial consultant so that you will come to know the best available tools in the market for your retirement planning.