Though you may not be ready to admit it, many of you are probably nearing retirement.
Hopefully you already have a retirement savings plan working for you. But don't just
forget about it. Here are some tips that can help maximize your plan as you near
retirement.
Pump it up
Rev up your retirement plan by making larger contributions to your 401(k). Thanks to
new contribution limits, you can stash even more money in your 401(k) than ever before.
Save automatically
Set up automatic deposits to a mutual fund, IRA,
Certificate of Deposit (CD) or
savings account. If you get a raise or a
bonus, deposit all or part of it to your retirement savings
Look at your strategy
What is your current investment plan? Will it
change once you retire? Take advantage of this opportunity to rethink and improve
your investment strategy.
Get insured
Review your life insurance coverage and consider long-term care. It seems far off
today, but it will save you thousands and you get to choose your own care.
Don't be afraid of change
If another career opportunity comes along, look at how changing your employer could affect
your retirement plan. Depending on your situation, you may want to seek professional
advice. Our Financial Consultants can help determine
what will work best for you.
Take a look at your options
How could early retirement affect your retirement benefits from your employer's plan?
What is the difference between taking a lump sum and income for life? This is
another situation where you may want to seek professional advice.
Look to the future
Start thinking about your estate before you retire.
Under new laws the estate tax was repealed, but if it isn't reinstated after 2010 and your
estate is large enough, your family may have to pay taxes. You may want to talk to a Financial Consultant about ways to structure your retirement income to benefit your estate.
Consider taxes
Look for tax-exempt or -deferred investments. These not
only allow you to invest without paying taxes, but it also lowers your taxable income.
Stay on course
Don't let a new car or a vacation lure you to dig into your retirement. Make your
retirement a priority now, and you'll have more money to spend on all the things you want
later in life.
If you have any questions regarding retirement planning, feel free to contact
our Financial Consultants. They can help you choose
investments and savings plans that are right for you and your family.