Setting sail with Royal Caribbean Cruises as a career employee has many benefits. Likely, retirement isn’t the main benefit that initially attracts employees, but eventually after some time sailing the seas retirement begins to become an important subject. This can lead to the important question: what retirement options are available for Royal Caribbean Cruises’ employees?
Great Benefits Include Diversified Retirement Plans
The good news for those who were more interested in the health care, time off, and discounted cruise benefits – Royal Caribbean Cruises also offers great diversified retirement plans for their employees.
Specifically these come in the form of: non-contributory pension plans, 401(k) plans, and an employee stock purchase plan.
While every employee during onboarding was briefed on these benefits, the degree of each employee’s involvement over the years of working will vary considerably. Either way, you’re now interested in paying more attention to these funded retirement plans and considering your options after retirement.
Explaining Royal Caribbean Cruises’ Retirement Plans
Whether your going to become Royal Caribbean Cruises’ permanent customer, have found a paradise island in the Caribbean Sea to retire to, or have decided Alaska is would be a wonderful contrast, the good news is: you can take full advantage of your hard-earned retirement funds with the right management. Let’s first explain the plans offered with Royal Caribbean Cruises.
The non-contributory pension planned offered from Royal Caribbean Cruises is basically a traditional pension where the employer is paying a certain amount into a qualified retirement plan without the contribution of the employee.
This also means this amount is not taxable until the pension is withdrawn after retirement. An employer will have a certain amount of time required for employees to work for them in order to receive this retirement benefit, which is called vesting.
This pension will accumulate through the years and upon retirement at age 59 ½ will be incrementally paid to the vested employee. Recipients will be required to pay income taxes on the amount they receive yearly. The amount received depends on the amount of years, salary, and other specifics determined by the employer, but a set amount will be distributed monthly while in retirement.
While the non-contributory pension plan is non-voluntary, the 401(k) retirement plan is voluntary. A certain amount will be taken from each check and placed in a 401(k), as well as any extra amount an employee wants to contribute. This 401(k) retirement account will be invested in a portfolio of mutual funds generally, so the return depends upon the financial managers’ decisions.
An employee stock purchase plan is a voluntary retirement benefit plan where the employer takes a portion of employees checks and buys their company’s stock at a discount. The time frame and performance of the stock will determine the return on investment at retirement.
What Options Do I Have With These Plans?
While these plans mature and start to become larger, the question then becomes: what’s the best way to manage these without paying heavy taxes? At least this should be the question as taxes have been deferred up until this point, but upon withdraw they’ll be required.
The objective then becomes to manage these hard-earned retirement investments in the best way to avoid heavy taxes and gain a return on what remains.
The financial principle: “it takes money to make money” is true, yet also true is: “the more you make they more they take”. The good news is there are solid options of how to manage your retirement, so you can minimize taxes and increase profits.
The key tool here is what’s called a roll over, which is a legal financial transaction from one qualified retirement plan to another. This rollover (if done in a timely and correct manner) allows investors to bypass taxes and reinvest in more profitable retirement plans. Although the retirement plans Royal Caribbean Cruises gives employees are good, a savvy investor may want more control over the funds they’ve accumulated.
At this point finding a qualified, experienced, and expert financial advisor to help you understand your specific investment options is key. They can help you explore the options best suited for your financial plans and then facilitate and manage the process.
S.A.C. Investments is the retirement specialist that can help you understand your investment options in: ETF’s, Mutual Funds, Bonds, Annuities, and can help facilitate any roll overs. Working with a smaller financial firm gives you top-talent and the personal attention needed to make tough financial decisions with your hard-earned retirement.
Our experience and expertise in the financial industry, specifically around retirement, can work on your behalf. Our goal is to manage your investments and monitor the risks so you can enjoy retirement. We do this with integrity and unbiased professional advice provided through a client-friend relationship.
Royal Caribbean Cruises’ employees have great retirement plan benefits, so understanding the options available to capitalize on these hard-earned funds is vital. Having a trusted financial advisor on your side to help you understand these options and then professionally manage the details takes the complexity out of the process.
The financial investment world is a complex area to navigate and large amounts of money can be lost with simple mistakes. S.A.C. Investments is here to help Royal Caribbean Cruises’ employees take full advantage of their retirement plans.
If wise choices are made, these retirement funds can increase while taxes are minimized, ensuring you a healthy financial life during retirement. If interested in learning more please contact us today for a free 30-minute consultation.