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5 Retirement Resolutions for a Prosperous New Year
The holidays are over and it’s time to re-evaluate your finances and make a game plan for navigating the new year and beyond, bolstering your retirement savings along the way.
1. Move extra savings to a high-interest account
Putting money away in a tax-advantaged account is responsible retirement planning, but leaving money in a traditional savings account is leaving money on the table. The national average interest rate for a saving account is just 0.06%, according to the Federal Deposit Insurance Corporation (FDIC). However, you can easily find savings rates as high as 2.45%.
This CIT Bank Savings Builder Account offers 2.45% interest as long as you deposit a minimum $100/month or maintain a $25,000 balance.
2. Maximize your 401(k)/IRA contributions
For 2019, 401(k) contributions are increasing to $19,000, up from $18,500 in 2018. IRA contributions are now $6,000, up from $5,500. If you are 50 or older and making catch-up contributions, limits remain unchanged at $6,000 for 401(k)s and similar work-sponsored plans and $1,000 for IRAs.
3. Protect your identity
Older Americans fall prey to over $2.6 billion in financial scams annually, according to the National Center on Elder Abuse.
The FBI warns that senior citizens are common targets by con artists because they're most likely to have a “nest egg,” own their home, and/or to have excellent credit.
You can find several free and paid options to protect your identity online.
4. Update your will
This legal document spells out how you want your assets divided after you’re gone, including larger assets like your home, family heirlooms or personal possessions.
There’s also a “living will,” which defines what medical actions doctors should take in the event you become incapacitated. Medical professionals turn to a living will when you can’t effectively communicate your wishes or make your own decisions.
5. Start working with a professional
While the value of consulting a financial advisor will vary by person, research suggests that average additional investment returns can range from 1.5% to 4% each year.
Chances are, there are several highly qualified financial advisors in your town. However, it can seem daunting to choose one.
This new tool makes it easy to find the right financial advisor for you. Now you can get matched with up to three local fiduciary investment advisors that have passed a rigorous screening process.
1. Simply enter your ZIP code below.
2. After you enter your ZIP code and answer questions about your financial goals, you can compare up to three top advisors local to you and decide which to work with.
3. Enjoy a better financial future!
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SmartAsset - copyright 2018
SmartAsset - copyright 2018
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