Retirement plans are a must when it comes to planning your life as they play a key role in deciding how your life is going to be once you stop working. And if you successfully plan your future with a proper retirement plan, you may even be able to take an early retirement that allows you to enjoy your second innings to the fullest. Choosing the right and the best retirement plan is the crux of life-planning. To help you make this quintessential decision, below is the list of the best retirement plans for one and all.
Pensions
These are one of the most beneficial plans as the employer pays most of your dues while you work for him, thus making your retirement plan easy to manage. However, the only catch here is to qualify for this plan as it requires a long time commitment to the employer. This plan is mostly available in municipal and government institutions.
Defined Contribution Plans
These plans are the best because the control of your future is in your hands unlike the previous kind of retirement plan. Here you can choose almost everything about your retirement plan according to your requirements. The 403b and the 401k are some examples that fall under this category of retirement plans.
Roth IRAs
The reason why this plan is listed here is that it is tax-deductible and available to everyone. It is advisable for someone who is looking to retire early and can contribute a considerable amount to this plan.
SEP IRAs
These plans are best suited to self-employed individuals as they allow them to make the contributions under their own accounts instead of the company accounts. Also, these are one of the most economical plans as they have some of the lowest contribution limits.
Real Estate
For people above the age of 50, property investment is a great plan, making its rent a steady source of income and therefore, one of the ten best retirement plans.
Social Security
If you are eligible for Social Security, it would be one of the best fall backs that you can have after retirement.
Qualified Plans
This plan is usually sponsored by your employer and the contributions into it are not taxed. The employee increases business profits and stays with one employer for longer, making it a win–win situation and hence, a part of the ten best retirement plans.
Guaranteed Income Annuities
Investing in the future is something that every working professional must do. A sizeable investment will yield a reliable and guaranteed source of income after retirement. These income annuities are one of the best ways to achieve that.
Cash Value Life Insurance Plans
Borrowing money against your life insurance premium account is something that most retired senior citizens prefer doing since it is way of earning a steady income.
Real Estate
An option rarely remembered as real estate property can often be considered a long-term retirement plan and a logical investment.