On this week’s audio podcast, I will provide you with 5 new year’s resolutions for those nearing retirement. If you are getting ready to retire or just retired, you won’t want to miss this episode.
Welcome to Cortburg Speaks Retirement Podcast
with Miguel Gonzalez, MBA, AIF®, CPFA®, CRC®
CLICK HERE TO LISTEN TO MIGUEL'S LATEST PODCAST
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On this week’s audio podcast, I will provide you with 5 new year’s resolutions for those nearing retirement. If you are getting ready to retire or just retired, you won’t want to miss this episode.
Welcome to Cortburg Speaks Retirement Podcast
with Miguel Gonzalez, MBA, AIF®, CPFA®, CRC®
CLICK HERE TO LISTEN TO MIGUEL'S LATEST PODCAST
FOLLOW US ON:
INTRODUCTION
Welcome to Cortburg Speaks Retirement
An audio podcast about investing in the stock market, financial planning, money management and retirement planning. Each Wednesday, we help investors at all stages of life learn how to potentially grow and preserve their money from first job through retirement.
Now here is your host, Miguel Gonzalez.
HOST
Good morning and welcome to the CORTBURG SPEAKS RETIREMENT audio podcast.
On this week’s audio podcast, I will provide you with 5 new year’s resolutions for those nearing retirement. If you are getting ready to retire or just retired, you won’t want to miss this episode.
Getting ready for retirement is both exciting and daunting. While you are likely looking forward to the enjoyment and relaxation that retirement may bring, you are also cautious about ensuring you have enough money to be able to retire in the comfort you anticipate. If your retirement years are on the horizon, below are a few new year's resolutions that may help put you on track.
1. Add Funds to Your 401(k) and then to Your Individual Retirement Account
Funding your 401(k) to the maximum limit means you take advantage of the maximum employer-matching contribution. The maximum employee contribution limit for 401(k) plans increases from $19,500 in 2021 to $20,500 in 2022. If you are already maxing out contributions to your employer-sponsored 401(k), consider funding your individual retirement account (IRA) as well.
You are permitted to have a 401(k) and an IRA; however, whether your contributions to your IRA are tax-deductible depends on your adjusted gross income. The IRS Publication 590-A, found on IRS.gov, shows how to calculate your deduction.
For 2021 and 2022, the IRA contribution limits remain the same. All workers up to the age of 50 are able to make a regular contribution to their IRA of up to $6,000 per year. For those over the age of 50, the amount rises to $7,000, which is allowed as a catch-up contribution. If you have the means to add to your IRA each year, it is a great way to increase your account and build it up to your retirement date.
2. Run a Projection Analysis for Your Retirement
Those dealing in the financial world run projections all of the time to help them stay on track and put them in a good position to work toward their goals. So why not use a projection estimate to analyze your possible retirement path? Run a projection based on your contributions and the number of years left before your retirement to get an idea of where you may be when retirement comes.
3. Develop a Plan for Health Expenses
One of the most significant expenses that may use retirement funds and has the ability to derail even the most well-laid plans is health expenses. Health care costs may increase as you age. In many cases, Medicare may not cover all medical expenses. When determining the funds, you may need to retire comfortably; make sure to include a buffer for costly medical expenses.
4. Get Out of Debt
Retiring with a large amount of debt may make your retirement more stressful and your goals more challenging to work towards over time. Consider for your retirement plan, paying down as much debt as possible so that you will enter your retirement with as few monthly obligations as possible.
5. Give Your Credit Score a Boost
While you likely will not want to add debt by taking out loans in retirement, you will want to have the ability to do so if the need arises. If you have to borrow money, a low-interest rate is helpful to keep your overall debt lower. Paying down debt, paying your bills on time, and having a good mix of credit in good standing are all ways that may help improve your score.
Make sure to visit our website, www.CortburgRetirement.com. Our site is filled with educational videos, eBooks, publications, and financial calculators designed to help you learn more about your finances. As you search our site, send us a note regarding any questions you may have about any particular investment concepts or products. We will get back to you quickly with a thoughtful answer.
This is Miguel Gonzalez, Certified Retirement Counselor (CRC) and Managing Partner, with Cortburg Retirement Advisors signing off for this week’s educational podcast.
DISCLOSURES
Opinions expressed are subject to change without notice and are not intended as investment advice or a solicitation for the purchase or sale of any security. Please consult your financial professional before making any investment decision.
All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.
CRC conferred by The International Foundation for Retirement Education.
Securities offered through LPL Financial. Member FINRA/SIPC. Investment advice offered through Private Advisor Group, LLC, a registered investment advisor.
Private Advisor Group, LLC and Cortburg Retirement Advisors, Inc. are separate entities from LPL Financial.
Investing involves risk including possible loss of principal.
Sources:
https://www.irs.gov/publications/p590a#en_US_2020_publink100074297
https://www.cnbc.com/2021/11/05/irs-increases-2022-limits-for-401k-plans-.html