Preparing for retirement is an important goal for most people. Making adjustments to your retirement savings now can potentially add comfort and security to your retirement years. Consider these steps to help catch up on your savings before it’s time for you to retire.
Reduce spending and increase savings. Consider revamping your budget to increase your retirement contributions while cutting back on expenses. Set a realistic yet aggressive goal for how much you can apply to your retirement accounts each month, even if it means skipping some discretionary spending. Choosing how to simplify your lifestyle now is much better than being forced into indiscriminate cutbacks after retirement.
Maximize your retirement plan contributions. Look into taking full advantage of your traditional and Roth IRAs, as well as your 401(k), 403(b), or 457 plans at work by contributing the most that you can afford. The annual limits change over time, so check with your plan custodian to see how much you can put aside each year. Keep in mind that your income level may have an effect on your contributions to these accounts.
Don’t fret if you own your own business. There are options available for you that offer an opportunity to accumulate retirement savings while reducing your current tax burden. We can help you determine which plan is appropriate for you.
If you’re over 50, consider taking advantage of catch-up contributions. Qualified retirement plans allow bonus contributions once you reach 50 years of age, providing an excellent opportunity to catch up on your retirement savings. By working longer, you may be able to add years of contributions to your retirement savings, and you may also be able to postpone Social Security income until you can receive the maximum benefit.
Don’t leave your retirement to chance. There’s still time to catch up on your retirement savings. Contact us at (800) 382-0564 and we can discuss how to restructure your cash flow, retirement contributions and investment choices so you are properly preparing for your retirement years.