401k vs Pension Plans

By: Admin / Textr Online

Pension plans are defined benefit plans. They are retirement savings plan funded by the employer while the employee works for the organization and the money goes into the pension on behalf of the employee. This allows the employee to receive regular payments after retiring from the organization. 
Often employers offer pension plans to employees as perks to attract them. There are many retirement plans. The amount of money you receive depends on the years you have worked and your earnings overtime.  
Pension plans are usually funded by the employers. Though sometimes, the employee can put in their own money into the plan if they choose, but mostly the money in a defined pension plan comes from the employer. However, the pension plan depends on how long the employee has worked for and how much the employee has earned. 
The pay-outs start upon retirement. After retirement, the employee receives regular payments periodically, which usually last a lifetime.  


Precious Metals


There are many precious metals you can invest your money in. Gold, silver, gemstones are tangible items that you can own. You can invest by buying coins, gems, gold bullions and store them safely in a bank. 
However, if you are investing in metals like gold, you need to be aware that the prices may fluctuate from time to time. Prices tend to go up when there is scarcity and fear and may go down when gold is more widely available. These metals are highly valuable, but they are subjected to supply and demand just like other market commodities. 
However, if you plan on making your future safe, then gold is still a good and less volatile investment for you.  

Real Estate


Although there are occasional busts, real estate has been a solid investment for decades. There are numerous ways you can invest in real estate. 
Here are some other options for investing in different types of real estate: 
·        Farmland  
·        Single-family homes  
·        Commercial 
Real estate can offer passive form of income. People are usually interested in investing in real estate because they are tangible and can be managed easily. Owning real estate also offers access to equity and can give you leverage to buy additional properties or improve your existing ones. 
There are many sub-specialties for people who invest in real estate. This can range from individual rental houses, apartment buildings, storage units, car washes, office buildings, industrial buildings, and even real estate options or tax lien certificates.  

Business Ownership


You need a specific skill set to run a profitable business, or a franchise of a national chain. For this you will be needing along-term business strategy to invest, expand, grow your profits, hire employees, and handle all the details that come with business ownership. 
Owning a business always offers security whenever you need to take out a loan. At the end of your working years, your well-run business can either be sold for a profit or passed down to the next generation.  



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