Alternative to a Retirment Plan?

[dazraf69]

An individual sets up a retirement plan for various reasons. Among them: they don't feel social security will be there for them when they are a SS; they want to retire comfortably and will use the funds to live off of; ect. There are a number of other reasons but the point is that there is a sum of money for use when you stop working.

Now lets say you plan on never retiring. I feel this is a realistic assertion for many people. In other words, you will likely continue to work until your final days. In this case is there still a case to be made for a retirement? Is there a better alternative than a tax sheltered investment fund for someone who will never stop working?

This is not something I can easily type into Google. But I would like some thoughts on why someone would save for retirement who doesn't plan on retiring.

[Jimbo]

For the same reason you buy medical insurance. Do you plan on getting sick? Fire insurance, do you plan on setting your home on fire?

Jimbo

[dazraf69]

[ QUOTE ]
For the same reason you buy medical insurance. Do you plan on getting sick? Fire insurance, do you plan on setting your home on fire?

Jimbo

[/ QUOTE ]

I agree with you on that. And I am a firm believer in saving as my goal is to build wealth and security. I was just wondering if there was a better alternative for someone who didn't plan on retiring. The benefit seems to be the fact that retirement plans are tax sheltered. But the assumption is that when someone turns 65, they stop working and begin to withdraw from their savings. But it seems that there should be some alternative that is beneficial to building wealth that is not self security type investment.

There does seem to be some differences though between a retirment plan and an health insurance.

[maxtower]

Even if you continue working, its probably still better to use the retirement plans since they are tax advantaged.

One alternative would be to take bigger risks with your money by owning a small business. Since you don't plan to quit working, its ok to lose some cash on this, but you could potentially make much higher rewards than you could with limited 401k options.