We share with you these tips to create your own retirement fund

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Posted by admin on August 14, 2020
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For various reasons and currently by new political rules, not everyone will be entitled to a monthly pension for their retirement, therefore we share these tips to create your own retirement fund and secure your future finances.

Senior Couple Enjoy Retirement

If you are an employee of any company that offers you the benefit of the Mexican Social Security Institute or the Social Security Institute for State Workers, you have the right to join a private retirement fund manager, i.e. an Afore.

This way a modest amount of your monthly salary will be deducted and a fund will be created for your retirement, in which you will receive some contributions from the employer and the government.

Your retirement income will come from these resources, and will be managed and invested by the Afore that you have hired. Thus you will have to analyze the one that suits you best, as each one has different benefits that help you increase your resources.

Nonetheless, if you plan to retire and enjoy life comfortably, travel, and other luxuries, we recommend making constant voluntary contributions to your Afore from the first years of your working life. In doing so, you will be raising the replacement rate from 46% to 70% or so, otherwise your fund will only allow you to retire with 30% of your last salary.

If you want to ensure your old age and you are willing to discipline yourself so that all your effort is worthwhile, we recommend having an investment fund in a bank. These consist of making financial contributions to invest and manage resources to acquire better shares for your assets.

One of the most common ways to do this is with a group of people who invest in large amounts or create your own savings plan.

Although some banking institutions allow you to dispose of the resources in the investment fund, it is better not to utilize it so that your amount increases and reach more recourse to your retirement.

Are you a small business owner or a born entrepreneur? Your best option to secure your retirement is to hire a personal Afore where you are the only contributor of your retirement account.

Find the best option with financial advisors and banking institutions, as they can offer various services, fees, and adapt their plans accord to your monthly income.

Before choosing the path you will lean towards to ensure your retirement, it is important to have your future headed, this way you can visualize if you need to increase your savings and efforts to be able to have a decent old age.

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