Third Act Retirement Planning

Track your total spending! Even if you’re not in a painful financial transition, the principles for recovery and planning are universal. One of the first questions to ask is How much do you spend annually? Until people invest the time in documenting their expenses, you might be like deer in the headlights when you realize you are spending way more than you thought. (Source: NY Times)

Many people haven’t started saving for retirement, and don’t know when to even start. We’d like you to have a happy retirement. So, give us a call today!

FINANCIAL FACT FRIDAY: When you look at the median household retirement savings for all ages, it is $57,000 for full-time workers and only $23,000 for part-time workers. Compare this to what the financial pundits will preach today: The average couple will need between $1-1.5 million to retire comfortably! The disconnect and disparity are obvious. The financial impact of COVID has forced many families to spend any savings they had, including taking money out of 401(k)s. Let’s... see! Do I pay my mortgage, put food on the table, take my child to the doctor or save for retirement? What would you do? (Source: Gainesville Sun)

FACT OR FICTION: There are 50-plus catch-up provisions FACT: Fortunately, as a 50-year-old, you can catch up. For 2021, the IRS is allowing individuals to contribute an additional $1,000 to an IRA on top of the standard $6,000 limit. Self-employed people with 50 years and above holding a SIMPLE IRA can add $3,000 to the $13,500 limit. If you have an employer-sponsored 401(k), you can max out your contributions by adding $6,500 over the $19,500 limit. And while you are still gainfully employed, you can start a Roth IRA. The contribution for this year is up to $7,000 for that 50-plus. (Source: AARP)

No matter when you retire, the taxation landscape may be quite a bit different from how it is today, For starters, you could move into a higher tax bracket. This can happen simply as a result of the death of your spouse, which would move you from the married, filing jointly filing status to single. In addition, there are a few ways you could, or likely will, see your tax deductions go down. (Source: AMA)

WEALTH WEDNESDAY TIP #547: Retirement plans remain one of the most valuable benefits available to employees People count on their employers to offer support for retirement planning and education, tax-deferred investment vehicles and access to investment guidance. The majority of employees who are offered retirement savings benefit at work elect to take it. A study found more men than women participate in retirement savings plans at 61% vs. 55%, and married employees are also ...more likely to enroll in a workplace retirement savings plan at 74% compared with 62% of single employees. (Source: Benefits Pro)