Saving and Investing

At the end of one’s working life it is good to look forward to taking time off and to be able to live comfortably on a lifetime’s savings. It helps if your investments bring in good returns. Everyone everywhere is dealing with the effect of inflation and a fluctuating market. The question is, does your money bring in good benefits, or is it time to change to a different, more beneficial scheme? Getting financial advice is the best option. Should a helpful friend advice you, make sure that you check it out with a professional consultation service before you decide on acting on it.

If you have to switch investment plans, do it with caution. Weigh the pros and cons before taking a decision.

The following points should help organize your thoughts:

• An analysis will help give you a comparison of your current investment plan and its alternatives. You should be able to get this done by a specially licensed financial advisor.

• Take stock of the current scheme you are on.

• Take into consideration your retirement plans. If you retire according to plan or earlier than planned, the scheme you opt for should be flexible enough to handle that.

• If you are on a public sector savings scheme, stay with it as it will not be affected by inflation and you stand to benefit in the long run.

• A personal savings scheme is vulnerable to fluctuations in the stock market and if you are not into taking risks think carefully before opting for a change.

• There is a fee charged for switching schemes. If it is a small amount of money that needs to be changed to another scheme, this may not be practical as you may end up losing out.

• Keep in consideration the number of years left before retirement. Consider changing your savings scheme only if you have more than ten working years left.

• If you are considering changing to an overseas benefit scheme, it is prudent to check it out thoroughly. Make sure what you are getting into is not a scam. It is one of the important things to remember.

Having a good retirement plan in place will give you peace of mind. Choose the best scheme that gives you the best benefits so that you live out the rest of your years in comfort. Eliminate the worry of losing out because of fluctuating markets and inflation.

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