Skip to main content

Retirement planning for the self employed .






A large percentage of people working in Trinidad and Tobago are self-employed, according to the Central Statistical Office, and for them, retirement planning brings unique challenges. Unlike employees in more traditional jobs, many self-employed workers cannot rely on a steady monthly pay cheque. Being self-employed also means that you are on your own when it comes to retirement savings. Whereas employees are automatically enrolled in the National Insurance Scheme (NIS), and some benefit from employer-provided pension plans, there are no similar provisions for the self-employed. The good news is that there are still savings options open to self-employed workers who want to retire comfortably, especially for those who start early.




Annuities

Provided by insurance companies and other financial institutions, an annuity lets you pay premiums and receive a lump sum or regular payments in the future.

Mutual funds

A mutual fund is a managed portfolio of stocks and bonds. Investors buy shares in the fund and a fund manager uses this pool of money to invest in securities.

Retirement savings plans

Retirement savings plans contain stocks, bonds, mutual funds and other securities.

Real estate

When saving for retirement, consider adding income property to your retirement plan because, unlike annuities, the value of the asset could increase with inflation.
Labels:

Comments

  1. Unknown3 April 2018 at 18:21

    I think it’s a real disadvantage for self employed people regarding the NIB schemes. Good read!

    ReplyDelete

Post a Comment

Popular posts from this blog

How to reduce debt

There is no miraculous solution to eliminate debt, it comes with hard work and determination. Just like an athlete you have to practice good habits continuously. Here are a couple tips to get you started.
Post a Comment
Read more

Common questions about Critical illness

Many people in Trinidad and Tobago are not prepared financially when faced with a serious illness, despite having good medical coverage. When faced with a critical illness usually your income reduces but your expenses increase significantly. Expenses in this case not only includes the cost of health care, surgery, medication and medical consultants but those expenses you had before becoming ill. Critical illness insurance can help lessen the burden of increased out-of-pocket expenses so that you can focus on recovery instead of these expenses. What is critical illness insurance? Evolution in modern medicine has increased the survival rate for conditions such as cancer, stroke and other major diseases. Unfortunately, this has not reduced the growing rate of persons affected by these critical diseases who are usually unprepared financially for the cost associated with recovery. The purpose of critical illness insurance is to help supplement the benefits of traditional medical ...
1 comment
Read more

Amazing explaination of crtical illness

This is an amazing video that explains the benefits of critical illness coverage. Critical illness policies pay the entire coverage in a lump sum payment, and only pay for the first illness. It is important to acquire adequate coverage .
Post a Comment
Read more