Doing a sales job is no child’s play. If you’re also from a sales background, then you’ll nod your head in affirmation. Closing a sale requires you to put in great efforts in identifying potential buyers, chasing them for months and then finally bringing in money for your company.

In return for all your efforts, the company pays you attractive incentives. If you do not have any specific need that requires a lot of money, you may end up spending your incentives for no good reason. To avoid this from happening, you must make proper use of your incentive money.

One way to grow your hard-earned incentive money is to invest in instruments that can help you multiply your wealth over time. These include mutual funds, annuity plans, and monthly savings income plans to achieve various life goals.

Let’s talk more about these instruments:

A Guide To Earning Enough Incentives in Sales

Earning Enough Incentives in Sales

1. Mutual Funds

Mutual funds are one of the most rewarding instruments that can help you earn high returns on your investments.

Through these funds, your money will be invested in a portfolio of bonds, stocks and other such securities, which are managed by a professional portfolio manager. All these will help you build a large pool of money over time. Since professionals manage these funds, they will help you maximize your wealth using their investment expertise.   

2. Annuity Plans

Investing your money in an annuity plan is another excellent way to make your money grow. It is an instrument that can help you get a regular sum for life in return for the premium you pay to the insurer.

There are mainly two types of annuity plans to choose from, namely – a single premium annuity plan and a regular premium annuity plan. In a single premium plan, you can invest a lump sum amount of your incentive money as a one-time payment. The investor will pay you returns as well as bear risk on your behalf.

On the other hand, you can choose an annuity plan where you can make regular premium payments as and when you get your incentive money.

3. Retirement Plan

Earning Enough Incentives in Sales

After years of doing a sales job, you expect to lead a comfortable and secure retirement life. To make that happen, you can invest your incentive money in a retirement plan.

Depending on the chosen plan, you will get three benefits, namely, vesting benefits, death benefits and loyalty benefits.

  • The vesting benefit includes the pay-outs you will receive on reaching a specified or chosen age. It can be obtained either as a lump sum amount or as a regular, fixed payment. You can use these benefits to maintain your lifestyle, along with meeting with your daily expenditures in your retired life.
  • The death benefit component will pay your loved ones with a specified sum assured in case of your demise during the tenure of your plan.
  • Lastly, you will enjoy loyalty benefits in which you will receive additional benefits from the 11th year.

Also, you can avail tax exemption benefits as these plans are covered under section 80C, 80CCC and 80 CCD of the Income Tax Act 1960.

4. Provident Fund or PF

Another easy but excellent investment option is putting your incentive money in a PF account. It isa 15-year long investment, government-backed and, therefore, offers attractive annual interest rates. From a minimum sum of Rs. 500 to a maximum of 1.5 lakhs in a year, you can systematically save your incentives each time you receive and earn into this fund. In between your maturity period, you can also avail facilities, such as the extension of account, loan or withdrawal, according to your needs.

Moreover, the fact that the returns are entirely tax-free makes this a suitable investment choice.

Your sales incentives represent the hard work you put into 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, provident funds and other plans, choose the best ones and start growing your money. In doing so, you can even take help from financial advisors like FinEdge. They can provide you with the right advice and support in identifying which plan will align best with your needs. They can further help you understand how to invest in the safest instruments.

So, keep selling, keep earning and keep growing your money.


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