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Investment opportunities that you can give your employees

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One of the best things that you can do to help retain your employees is to provide them with a kind of investment plan. This is important for most employees because they want to invest their money in some type of sound investment plan for when they retire. In today's society Social Security is simply not enough anymore for retired people to live on. Therefore, employees are finding that they need to invest their money in other types of investments just so they can retire when the time comes. With how concerned employees are about building retirement funds providing them with investment opportunities is a great way to keep them happy, which can also mean that your employees will stick around for a long time.

Here are some of the more common investment opportunities that you can create for your employees.

Number one: 401K
The 401K is probably the most popular type of investment opportunity because the money that your employees are investing is taken directly from their paychecks, this means that the employees never even realize that it is missing. This opportunity is even more popular because employers will often match a portion of what their employees are investing, which helps to build up the employees 401K account. Some companies also allow employees to roll over their 401K account if they switch jobs, however, when trying to retain employees it is best not to advertise this feature, you can always bring it up later if they decide to leave.

Number two: Life insurance
Life insurance is another popular investment opportunity among employees because it provides for their families in case something happens. With life insurance policies what happens is that the employee pays a certain amount to maintain the policy each month and if something happens to the employee their family is able to collect on the policy. This is helpful because it can protect the family from numerous costs and expenses that they can incur due to the loss of the primary caregiver.

Number three: Stocks
Stocks are a great investment opportunity because they can yield a bigger return than other investment opportunities, mainly because of the fact that there is a higher risk with investing stocks. With stocks your employees are basically taking partial ownership of a company, how big of a part of the ownership they have depends on how many shares they own. While this is a high risk investment, some are higher than others; it is a good investment because of how big of a return your employees can get on their income.

Number four: Bonds
Bonds are basically promissory notes from the government or a private company and are a great form of investment. They are considered a great investment because there is little risk that your employees are going to lose their money. How bonds work is that your employees are loaning a set amount of money to a company or the government and they are agreeing to pay them back the specific amount of money that they borrowed plus interest. The agree to pay back that money on a specific date in the future, most bonds mature in 30 years from the date that they were issued.

Number five: Mutual funds
Mutual funds are a type of investment where one person manages the money of several investors. What they do is invest that money into various stocks, which is a great idea because any loss will not be as bad for people investing their money if a loss does occur. Mutual funds are considered a safer investment than stocks because of how small the effect can be if a loss does occur, however, the return on the money that you are investing isn't as high as it is with stocks.

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