Many people look at their pensions and think there is nothing they can do with them. Though they may not like it, they think their only option is to let that money sit and accrue a minimal amount of interest. They believe they are stuck with whatever terms their pension holder has outlined and that there is little they can do to change that.
In most cases, however, that’s not the reality of your retirement saving options.
You might think that you are stuck with your pension terms because it is impossible to transfer pension deposits or perhaps you fear that you will incur large fines and penalties if you do try to move that money. That may not be correct and you might be doing yourself a financial disservice by not looking into it.
Many nationalities have pension transfer options and, in most cases, pensions can be transferred into other sorts of investments with little to no penalties at all. In fact, moving your pension into diversified investments will most likely make you more money to retire with.
So, what are you waiting for?
Forget the “Don’t Mess With It” Attitude
People often think that they don’t want to touch, move or otherwise “mess with” their 401k, IRA or other pension account. They think that it has a tax advantage to not touch it. Actually, in most cases, you can usually easily roll that 401k into something else of your own choosing that pays out more dividends. The only stipulation with these accounts is that you can’t take it out of the IRA and 401k and remove it as cash – that’s when you get hit with a big penalty.
It’s More Flexible Than You Think
Many people have the notion that pensions aren’t transferable because transferring the money isn’t necessarily encouraged by the companies that hold the pensions. Since they don’t let holders know about these options, it just makes sense that people know very little about them. But it might be worth your financial while to find out what your options are.
By talking to a financial planning consultant like Richard Cayne of Meyer International, you can learn about all the possible options for making the most of your pension deposits. You might tip your hat to that financial planner when you are retired on a beach somewhere with a frozen drink in your hand!
What a Planner Might Recommend
Richard Cayne would almost always recommend moving your pension into an investment that can make the most money for you while still remaining as safe as every pension should be.
One of his favorite pension recommendations is rolling the money into some reliable annuities such as those that track the S&P index with principle guarantee. By doing this, you’ll increase your profits while still having the highest level of protection on the downside. Like all planners, Cayne knows that you’ll want the highest protection for your retirement fund.
For further information about pensions, how to make the most of them and other investment topics, Richard Cayne and Meyer International can be reached at (+66) 02 611 2561