3 Retirement Strategy Steps to Take This Year
3 Retirement Strategy Steps to Take This Year
January is long gone, and the time for resolutions is over… or is it? It’s never too late to make changes to your retirement! In fact, there are three retirement strategy steps you should take this year. Take the time to make the following three changes in 2015, and you can be on track toward a brighter future.
Increase contributions to your retirement fund. If you aren’t contributing the maximum allowable amount to your retirement fund, you should take advantage of the opportunity to save for retirement with all taxes deferred. The easiest way to save is by diverting part of your paycheck directly into your retirement fund. Contact your human resources department at work to make sure you’re on target to contribute the maximum amount this year. For 2015, you can contribute $18,000 to your 401(k), and an additional $6,000 if you’re aged 50 or over.
Review your portfolio. When you first decided upon your portfolio allocations, you balanced your desire for growth with your own tolerance for risk. But over time, your need for growth or your risk tolerance may change. You should review your portfolio sometime this year, to be sure it still matches your goals. Make an appointment with your financial advisor to discuss your retirement goals, expected retirement date, and your financial needs and abilities.
Evaluate your retirement plan. While you’re meeting with your advisor anyway, ask him or her to run a projection to show you how your current savings can provide for you in retirement. Taking this step may help you to see whether you’re saving enough money for retirement. Hopefully you’re right on target, but if necessary you can discuss delaying retirement, saving at a higher rate, or adjusting your retirement strategy options to better meet your goals.
You may have a few other retirement goals to meet this year. But if you accomplish just the three steps above, you can rest easier knowing that you have set yourself on a course to success.
14238 – 2015/3/10