In the Virgin Islands, consumers start retirement plans to prevent issues in the future. The right plan allows them to continue the same lifestyle in retirement as they had when working. A local financial advisor provides the consumers with a list of retirement choices from which to choose.
Starting Simplified IRA Accounts
The simplified IRA accounts are a more effective option for individuals who are self-employed. The plans enable the individual to add a maximum of $53,000 to the account each year. If a self-employed individual has employees, it is necessary for them to contribute to the plans as directed by federal laws.
Setting Up a 401(K) Plan
The employer-based plans enable consumers to save for retirement through deductions from their wages each pay period. The account holder must provide at least the standard value as outlined in the terms of the policies. However, the worker can increase their contributions to save more each term. The employer must match the worker’s contributions. The plans require the account holder to pay taxes whenever they deduct any value from the plan.
Starting Health Savings Accounts
A health savings account is beneficial for retirement and helps the individual cover vital medical expenses. After retirement, the individual won’t have the same access to major healthcare plans. Medicare could increase costs for premiums and require the individual to pay higher co-pays and deductibles. By starting a health savings plan, the individual avoids sudden expenses throughout retirement.
Whole Life Insurance Policies
Whole life insurance policies provide an increasing value over time. The policyholder pays a small monthly premium each month to keep the account open. They have the option to borrow money from the policy at any time or cash it in. The earlier the policy starts, the higher the payout for the policyholder.
In the Virgin Islands, consumers who plan ahead won’t face financial hardships when they retire. With the right plans, they can accumulate enough capital to sustain themselves throughout the remainder of their lives. The plans offer pre-tax contributions and the option to increase retirement funds at any time. Consumers who need more information about retirement can contact David Johnson Cane Bay.