Is it better to go for a retirement plan that many insurance companies are offering or one should go for savings on personal basis and deposit the money in long term fixed deposits or other safe instruments.
Its good to go for a retirement plan but it can be risky, as the companies could wind up any minute. This has been happening recently. If you do decide to save on a personal basis make sure the bank is covered. E.g in the UK, If a bank winds up, the customer is guaranteed about £50,000 of their money. So they won't lose it all.
I find saving money in fixed deposits is tempting bcos you can still break the terms of withdrawing your money - It just means you lose the interest, so I opted for property investment. You might want to consider this too.
I look at it like this. If an insurance company is involved, it is because they stand to profit. That profit comes from me. If I can accomplish the same goals on my own, then I feel that would be better.
Regardless, you still need to save for retirement.
I am glad i have a retirement plan because I have been able to borrow of it when i really needed the money!
@Kidgas - This is what that I believe, and due to this reason I have not taken any plan but now planning to start making some investments for retirement purpose.
@kmackey32 - Thats good for you that you already have one.
@Lady_E - You are absolutely correct and taken a clue from this resession. Retirement planning should not be much risky. Here in India, all banks are covered up but with quite less amount, its around $2,000 and thats only savings account and not fixed and recurring deposits. But if we have done the investments in nationalized banks, then all investments are covered but again limited to some amount.
Only mutual funds and other bonds are safe. But I think it is better to go for retirement planning personally. You know where you have invested what amount and can switch or withdraw your amount as per the needs. Property investment is also a good option, but for this one must already have some decent amount of money. If you will see the root cause of this recession, it was due to property only, if I am not wrong.
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