The holidays are here again. It’s that time of year to shop for gifts, plan parties and spend time with family and friends. If you’re like most people, you’re busy trying to find the perfect gift for your spouse, children, parents or other loved ones.
But have you considered a gift for yourself? It may be tempting to go out and buy yourself the latest gadget. However, consider another item that could pay dividends for years and decades to come: a review and adjustment of your retirement strategy.
According to a Gallup survey, 54 percent of Americans are worried about not being able to afford retirement.1 If you’re among that group, now may be the time to take action. The holidays may not traditionally be the season of financial planning, but the year-end represents an ideal time to make changes and take action.
Give yourself the gift of a solid retirement strategy this holiday season. A financial professional can help you conduct a full review and recommend possible changes. Below are a few steps to consider:
Do you use an IRA to save for retirement? They’re powerful savings tools because they offer a variety of tax benefits. In a traditional IRA, you may be able to make tax-deductible contributions. Your growth is also tax-deferred until you take distributions. In a Roth IRA, you don’t get deductions for your contributions, but you get tax-deferred growth and tax-free withdrawals after age 59½.
In 2018 you can contribute up to $5,500 to either a traditional or a Roth IRA. That number increases to $6,500 if you’re age 50 or older. If you haven’t yet hit those limits, see if you can make another contribution soon. You can actually contribute all the way until April 15, 2019, and still count it as a 2018 contribution.2
Increased 401(k) Contributions in 2019
Are you one of the millions of Americans using a 401(k) plan to save for retirement? If so, you can put more money away in 2019. The contribution limit for 401(k) and 403(b) plans is increasing to $19,000 next year. If you’re age 50 or older, you can contribute an additional $6,000 in catch-up contributions.3
Granted, $19,000 may be a significant amount to contribute to your retirement plan. However, even a modest increase can have big returns. Consider that your contributions will grow tax-deferred over years and possibly decades. A bigger contribution could also lead to increased matching contributions from your employer.
Retirement Income Plan
You may know how much you have in savings for retirement, but do you know how much income those savings will produce? If not, give yourself a gift this holiday season and meet with a financial professional to develop a retirement income estimate.
A financial professional can project your potential income from Social Security, a pension, savings or other sources. That can help you determine whether you’re on the right path or if you need to make adjustments. You could also examine tools to protect your income, like an annuity.
Ready to retake control of your retirement strategy this holiday season? Let’s talk about it. Contact us today at Jim Lee Financial. We can help you analyze your needs and develop a plan. Let’s connect soon and start the conversation.
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
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