Incentives in sales are not child’s play. If you also come from sales, then you will nod your head affirmatively. To complete a sale, you have to put a lot of effort into identifying potential buyers, chasing them for months, and then finally making money for your business.
In return for all your efforts, the company pays you attractive incentives. Unless you have a specific need that requires a lot of money, you may spend your incentives without good reason. To avoid this, you must use your incentive money properly.
One way to increase your hard-earned incentive money is to invest in instruments that can help you multiply your wealth over time. These include mutual funds, pension plans and monthly savings plans to achieve various life goals.
Let’s talk more about these instruments:
A Guide To Earning Enough Incentives in Sales
1. Mutual Funds
Mutual funds are one of the most rewarding instruments that can help you achieve high returns on your investments.
Through these funds, your money is invested in a portfolio of bonds, stocks and other securities of this type, managed by a professional portfolio manager. All of this will help you build up a large cash position over time. Because these funds are managed by professionals, they will help you maximize your assets through their investment expertise.
2. Annuity Plans
Investing your money in a annuity plan is another excellent way to make your money grow. It is a tool that can help you receive a regular sum for life in return for the premium you pay to the insurer.
There are two main types of annuity plans to choose from, namely a single premium annuity plan and a regular premium annuity plan. With a single premium annuity plan, you can invest a lump sum of your incentive money as a single payment. The investor pays you the return and bears the risk on your behalf.
On the other hand, you can choose an annuity plan where you can make regular premium payments as soon as you receive your incentive money.
3. Retirement Plan
After years of working in sales, you can expect a comfortable and secure life in retirement. To achieve this, you can invest your benefit money in a pension plan.
Depending on the plan you choose, you will receive three benefits, namely vested benefits, death benefits and loyalty benefits.
- The vested benefits include the payments you receive when you reach a certain or selected age. It can be drawn either as a lump sum or as a regular, fixed payment. You can use these benefits to maintain your lifestyle and cover your daily expenses when you retire.
- The death benefit component pays your dependants a certain sum insured in the event of your death during the term of your plan.
- Finally, you will benefit from loyalty benefits, where you will receive additional benefits from the 11th year onwards.
In addition, you can take advantage of tax exemption benefits as these plans are covered under Sections 80C, 80CCC and 80 CCD of the Income Tax Act 1960.
4. Provident Fund or PF
Another simple but excellent investment option is to deposit your incentive money into a PF account. This is a 15-year, government-backed investment with a long maturity that offers attractive annual interest rates. From a minimum sum of Rs. 500 to a maximum of 1.5 lakhs a year, you can systematically save up your incentives every time you receive and earn in this fund. In the meantime, depending on your needs, you can also take advantage of facilities such as account extension, loans, or withdrawal.
The fact that the income is completely tax-free also makes this form of investment a suitable choice.
Your sales incentives represent the hard work you do while working for your company. So make the most of your incentive money by investing it in the right financial instrument. Now that you know how to invest in mutual funds, retirement funds, and other plans, choose the best ones and start making money. You can even get help from financial advisors like FinEdge. They can give you the right advice and support to help you determine which plan best suits your needs. They can also help you understand how to invest in the safest instruments.
So, keep selling, keep earning, and keep growing your money.