If you are building your retirement nest and have been looking at ways to significantly bump it up, the section 703 retirement plan could be just the right solution for you.
If you are wondering if it is a special retirement plan, then you are grossly mistaken.
It is not a retirement plan at all.
But this can be a very handy tool that can help you significantly boost your retirement savings without a huge ado.
If you are a systematic saver and ensure that you put away some money at regular intervals.
This is a wonderful plan that can enhance your profitability more than 100 times and can even yield a more positive outcome.
In many ways, you can call it the magic plan that will help you become a millionaire by the time you retire.
Also, help you share your wealth with your community.
This is that plan that makes your money work pretty much as hard as you do and create returns that can be astoundingly high.
The biggest impetus for this retirement plan is no doubt the fact that you do not have to invest additional money.
All you are doing is investing your money well.
What Is Section 703 Retirement Plan?
Though not a secret plan really, it would perhaps pretty much make you scream with curiosity at the moment, what is section 703 retirement plan?
Well, indeed you have come to just the right place for understanding this unique saving mechanism that enables your money to work in your favor.
It gives you the ultimate buying power and looks at doubling your income base or even tripling it within a short while.
The use of compounding interest surely helps your cause and makes you attain your financial goals in a much shorter time span than you could have envisaged.
The problem though is only a handful of people are aware of this wonderful proposition and monetary arrangement.
The consensus is that close to perhaps only one in 1000 Americans have heard about section 703.
Moreover, lesser people realize that they can incorporate it in their broad retirement plan to gain better returns, profit, and grow the retirement nest egg at a much faster speed.
Now wouldn’t it be wonderful if you did not spend most of your service life thinking about how to boost your savings?
Often deprived yourself of simple joys in an effort to achieve this end.
Section 703 Is Not a Retirement Plan at All
The fact is that section 703 is not a retirement plan at all.
It is one of those provisions in the stock market that a broker or trader worth his salt would not give away that easily.
However, it is the one that you can gain from significantly if use it appropriately.
The trick is you can’t even blame them for it, coz you never asked them for it.
So you can understand the extent to which people know about this by-law.
For all stocks that are NYSE listed, this is the section that covers every type of dividend, stock split, and other profit-sharing strategies adopted by the stock market.
Well maybe, you never thought about it but as the old age goes, ‘many drops make an ocean, many pennies make a pound.
So with the little investments that you make, you can keep buying more and more of these stocks.
Doing that pays dividends, or rather share their profit with their clients, and keep enhancing the overall money that you are accumulating from them.
For example, at the end of 5 years, you have saved $10,000, and you intend to put it in the best scheme that lets this money earn the highest possible returns.
Moreover, even then your rate of returns realistically would never be more than 10-15%.
But if you are on the contrary using this money to buy stocks that pay dividends regularly, you are able to grow the same amount of money in two ways.
Way Number One
On the other hand, the little amount of dividend money will keep accumulating.
While at the same time, the stock value will also keep getting enhanced over a longer-term perspective.
However, the one way you can really help your money grow using the section 703 retirement plan is by ensuring that you make some wide choices.
While there are a number of stocks that pay a dividend, you have to choose the counters that are rather steady in terms of their dividend payout.
For example, if you choose counters like Colgate-Palmolive, they have been paying dividends consistently since 1895.
In fact, this is one of those ubiquitous FMCG stocks that never see terribly volatile movement.
At the same time regularly pay the dividend to its stockholders.
Way Number Two
The other reason for this is also the fact that these counters are cash-rich.
You would notice that most stocks that pay dividends are cash-rich counters.
Moreover, the point is that not all of them pay the dividend this religiously.
Therefore you must be very careful and have to conduct due diligence of the stock counters very closely before making an investment call.
It is all about investing wisely and letting your money work hard on your behalf while you can sit back and relax.
The investment just keeps adding little to the kitty every now and then, whenever possible.
To Invest Your Money Appropriately
Therefore when anyone asks, what is section 703 retirement plan would be that it is not a retirement plan.
Moreover, on the contrary, it is a type of financial understanding that allows you to invest your money appropriately.
The trick in this plan is never about how much you invest but where you would invest.
This is perhaps one of the best and most succinct representations of making an informed financial decision.
You are following nobody, listening to no one, and just creating a financial call based on your exposure and understanding of the market.
No doubt you would have to devote significant time and energy to it.
Often you would have to put in a serious study of the various stock counters before you commit cash.
However, the 200-500% return scope surely justifies the hard work that makes the section 703, the rock-star of your retirement plan.