For some, especially during these tough market conditions, their retirement investments and savings may have declined. Due to this setback, your retirement timeline may have been pushed back, tightening your budget, making you work more years than you planned, and has put pressure on your overall retirement longevity. If this is you, you’re not alone! And there are opportunities you may have to boost your retirement savings to get back on track.
Contribute to a 401(k) or Traditional IRA to reduce your taxes for that year. Since 401(k) and Traditional IRA contributions are deducted from your income for the year the contributions were made, you can save on taxes by utilizing these instruments while putting more into your savings for the future. In addition, your employer may offer 401(k) matching for your accounts, meaning that they’ll contribute a certain amount based on what you contribute! For example, you could see a 5% boost to your contributions if your employer matches 5% of employee contributions. Taking full advantage of matching contributions can help you see your retirement investments grow and get back on track.\
In addition, you may not have known that your annual contribution limits for IRAs and 401(k)s increase by $1,000 once you hit 50! Suppose you’re looking to get your retirement accounts back on track. In that case, you could benefit extra by increasing your yearly contributions, letting more of your money benefit from a potential stock market rebound.
If you have other income sources or can still work full- or part-time, consider delaying the time you choose to officially claim Social Security benefits. If your market-exposed accounts took a hit, you don’t just have to hope for an immediate market rebound to get back on track. Instead, suppose you have supplemental income sources such as annuities, savings accounts, or even universal life insurance. In that case, you can wait until you’re 72 to claim Social Security to access a maximum benefit amount. That way, you can give your retirement accounts the time they need to recover from a market downturn before withdrawing from them.
Finding ways to improve your retirement strategy isn’t easy to do on your own. Some tools and strategies take professional knowledge to utilize and execute well, not to mention that making further mistakes with your retirement plan may cost you even more in penalty fees or taxes. But that’s where a financial professional can help guide you. Contact us at (603) 261-3736 to get started today.
Source: https://www.merrilledge.com/article/10-tips-to-help-you-boost-your-retirement-savings-whatever-your-age-ose
Bob has a passion for making your money work hard for you. He takes profound joy in ironing out a plan for a long and comfortable retirement, no matter what your current income or level of wealth. With a work ethic second to none, he has a zeal for transforming uncertainty into stable ways for you to protect your future and your family. He knows that the quality of your life you enjoy today can remain as rewarding—or even better—after retirement.
With a strong background in information technology, Carol is instrumental in building operational policies and strategies that keep the organization functioning smoothly. Carol’s organizational skills and her flexibility to jump from priority to priority along with her commitment to customer service makes her an essential part of the Grimard Financial team. When Carol is not working with the Grimard Financial Family, she is a very creative and accomplished photographer.