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5 Ways to Boost Your Retirement Savings in 2019

SmartAsset - copyright 2018

Matt Wiley | JAN 31, 2019

It's important to routinely take stock of your finances and evaluate where your retirement savings stand. 

These tips can help give your retirement savings a boost in 2019.

1. Earn 2.45% on your savings with a high-interest account.

To put that into perspective the national average savings account rate is 0.06%. A very common mistake is to leave money in a checking account accruing no interest. If you use a high-interest savings account you can earn up to 2.45% and still have unrestricted access to your savings.

This CIT Bank Savings Builder Account offers 2.45% interest as long as you deposit at least $100/month or maintain a $25,000 balance.

2. Work with a financial advisor. 

These professionals can provide expertise on how best to allocate your assets, make smart investments and maximize your retirement account contributions. Financial advisors can also help you determine the best order to withdraw from your accounts, so you don't miss out on valuable compound interest or potential tax incentives.

A recent Voya Financial report found that 79% of people who use a financial advisor “know how to pursue achieving their retirement goals.” The study also found that 59% of those who use an advisor have calculated how much they need to retire, while 52% have a formal retirement investment plan in place.

3. Downsize your large home and consider a low-tax state.

Housing is one of the largest expenses for retirees, even if the mortgage is paid off. Even if you’ve fully paid off a mortgage, you can still have significant housing costs (think property taxes, insurance and maintenance).

Many people buy large homes when raising children. As you get older and the kids move out, a smaller space could be enough for you with your new lifestyle. It could also save you significant money.

4. Avoid common financial mistakes. 

A financial advisor can help you maximize social security benefits and advise on when to start accepting them in the most tax-efficient way. They're also highly skilled in helping people minimize capital gains taxes and avoiding paying penalties on retirement account distributions.

As you withdraw money from your 401(k) and other retirement accounts, you will need to pay taxes on some or all of that money. You can lower the tax hit by withdrawing money from certain accounts in an informed way. For example, money you withdraw from a Roth IRA is not taxable income. Money you withdraw from a 401(k) is taxable. Depending on how much you spend each month and the makeup of your savings, your tax situation could look quite different. Financial advisors can help guide you through these complicated situations.

5. The Best Way to Make Your Retirement Savings Last.

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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