Establishing a retirement plan could be one of the wisest business decisions you will ever make.
Your financial future can be greatly impacted by the decision you make today regarding your retirement.
It’s important to understand that participating in a retirement plan is just one of the steps we all need to take to prepare for a secure retirement.
Saving for retirement and other long-term goals
Even as you consider other savings goals, it’s important to continue saving for retirement. Be sure to take full advantage of your workplace savings plan (including catch-up contributions if you are age 50 or over), and contribute to an IRA and other tax-advantaged investments to save even more. If your employer offers matching contributions in your workplace savings plan, don’t say “no thanks.” It’s like getting free money. Once you’ve maxed out your workplace savings plan, a Roth or Traditional IRA lets you save with tax-free growth or on a tax-deferred basis.
Maximizing your retirement savings is a smart way to help create a solid foundation for your future. But, the reality is, you will need to save for more than just retirement.
Position yourself to save for other important priorities in addition to retirement, Newbridge believes that you should:
- Prioritize your short- and long-term savings goals (i.e., buying a car or home renovations vs. saving for college or a second home).
- Examine the tradeoffs, time horizons, and costs of each of your financial goals; and learn about the types of investments that may help you achieve your goals.
- Stay on track; ensuring you don’t lose sight of your retirement savings goals
Making informed decisions can help you build a better retirement strategy.
For 401k plans and IRAs, if you are 50 or older, take advantage of catch-up opportunities to potentially increase your retirement income.
- Max out your 401(k) with up to $18,000 in annual pre-tax contributions, plus $6,000 in catch-up contributions for those over age 50.
- Open an IRA to expand your savings potential, with up to $5,500 in annual potential tax deductible contributions, plus $1,000 in catch-up contributions for those over age 50.
- Invest in a tax-deferred annuity with no IRS contribution limits* and let your investment grow tax-deferred.
- Consider lifestyle changes to save even more now and better position yourself for a secure retirement.
- Understand tax benefits and the most advantageous options for your retirement savings.
Develop a strategy that seeks to generate income from your retirement portfolio. Newbridge believes that you should consider the following:
- Make sure your asset allocation meets your investment objectives, risk tolerance and income strategy..
- Understand important factors for building a retirement income strategy.
- Find a strategy to help meet your retirement income needs.
- Learn about the importance of building your spending reserve.
Stay actively engaged in the decision making process; every person’s situation is unique and your Newbridge Financial Consultant has many investments for you to consider. These are just a few that can be used as building blocks for your portfolio. Talk to your advisor about building an investment strategy that suits your own individual needs in retirement. Creating income from your nest egg sounds challenging; but, our Advisers can help you build a portfolio that seeks to support an annual withdrawal strategy to meet rising costs or unexpected economic bumps that inevitably occur over time.