If you’ve got a retirement account, there are certain mechanisms in place to ensure you get the money you’ve accumulated. There are also ways to make sure the money you invest can grow. Accumulation units are a type of investment that keeps your account functioning properly. Learn a little about them and why they are important below.
What Is an Accumulation Unit?
An accumulation unit is an investment trust that is designed to gradually increase funds. This happens slowly over a period of time. Over an accumulation period, the funds become reinvested. An accumulation unit does not give out a steady stream of income over time. It is there to make sure these funds are reinvested properly.
Why Is It Important?
If your funds sit and don’t increase, you could be missing out on extra money. You can get the most out of your funds this way. If you want to find a way to watch them grow, an accumulation unit could be of use to you.
There are other ways to invest as well. It can be a little overwhelming to pick a plan that is right for you. Seeking out professional guidance can be a great place to start. A professional can assess your situation and come up with a good plan for you.