Getting started with deferred compensation through the PGA of America can provide a number of benefits, including tax-deferred growth and the ability to choose your investment allocation from a wide variety of funds. In this article, we’ll provide 5 tips to help you get started with deferred compensation and make the most of this opportunity.
Check your eligibility: To participate in the deferred compensation program, you must be a PGA Member in good standing working in the United States. Class F Members are not eligible to earn points, but if you return to good standing in a given year, you may earn points for that time period.
Understand the points system: The points system was developed internally with outside counsel and reviewed by the PGA of America. The system is designed to compensate members who participate in programs that meet specific performance objectives. Some activities allow for partial points and others do not. It is important to read the definitions and understand the categories you may qualify for.
Make the most of your activities: Some activities have a cap on the number of total points one may receive, while others only allow for one-time participation. To maximize your earning potential, it is important to understand the restrictions and participate in multiple activities.
Verify your participation: To ensure accuracy in reporting, the participating member must attest to their participation and have another member attest to their participation. The PGA of America may request additional proof of completion of the activity.
Start early: The power of compounding over time makes the deferred compensation plan most beneficial for younger members. If you are close to retirement or retired, the program can still provide a supplemental income for your future, but starting early will maximize the benefits.
In conclusion, the deferred compensation plan offered by the PGA of America provides a real and accessible vehicle for members to accumulate wealth toward a more comfortable retirement. With these tips, you can get started with deferred compensation and make the most of this opportunity.