Are you finally in a secure job but you’re not sure if you want to invest in a workplace retirement plan? Maybe you have a lot of fears, doubts, or misconceptions about saving for a retirement plan that are holding you back. Here are a few of those common fears and why you should still consider investing in a workplace retirement plan after all!
You’ll Make Expensive Mistakes
One common fear about investing in a workplace retirement plan is that you’ll make a lot of expensive mistakes that will affect your current and future financial situation. This is partially true, as Business Insider points out forgetting to roll over old 401(k)s, or over-complicating your investments can have financial consequences. However, the mistake of not even having a retirement plan will ultimately be the most costly and expensive, despite your valid concerns.
Your Money is Locked Up
Another common fear about having a workplace retirement plan is that your money is locked up and unable to be used. If this belief is keeping you from investing in a workplace retirement plan, don’t let it hold you back. There are lots of things that you can do with your retirement money that can benefit you financially. For example, Franchise Gator says that if you have $50,000 or more in a retirement plan, you can use that money to fund a business. So, while it can seem difficult to set aside money for a retirement plan today, remember that you will be able to use that money again later down the road.
You Won’t Earn a Profit
The concern that you won’t earn a profit on your retirement savings is a very real one, as it happens regularly to people who don’t have a good retirement plan. If your retirement plan doesn’t have very profitable investment options, or options that are too risky or inconsistent, The Motley Fool says that you will have a difficult time making a profit. For this reason, it is important to research and look into the retirement plans that are available to you to make sure that they’ll provide a steady profit without risk.
Now that you have learned about some of the common concerns and worries about investing in a workplace retirement plan, you should be well-equipped to make the decision that is right for you. Fears are definitely valid, but that doesn’t always mean that you’ll run into the same difficulties. Remember that each of these common concerns also have a solution, so a retirement plan could still be a great financial benefit for you!