End-of-Year Strategies to Boost Your Retirement

With the new year on the horizon, it’s a perfect time to reassess your retirement savings strategy. Whether you’re 5 years away from retirement, 40 years, or anywhere in between, it’s always a great idea to ensure you’re on track to reach your retirement goals.

Here are strategies to boost your retirement in the new year:

1. Maximize Your 401(k) Contributions

• Increase your Contribution Amount: If you haven’t maxed out your 401(k) contributions for the year, consider increasing your contribution amount. The IRS sets annual limits on how much you can contribute, so be sure you’re taking full advantage of this tax-advantaged account.
• Catch-Up Contributions: If you’re 50 or older, you can make additional catch-up contributions to your 401(k). This is a great way to accelerate your savings as you approach retirement.
• Employer Contributions: If your employer offers a matching contribution to your 401(k), make sure you’re contributing enough to get the full match. This is essentially free money that can significantly boost your retirement savings.

2. Contribute to an IRA

• Traditional or Roth IRA: Depending on your income level and retirement goals, contributing to a Traditional or Roth IRA can provide additional tax benefits and grow your retirement nest egg.

3. Review and Rebalance Your Portfolio

• Asset Allocation and Diversification: Ensure your investment portfolio is well-diversified and aligned with your risk tolerance and retirement timeline. Rebalancing your portfolio can help manage risk and optimize returns.

4. Consider Tax-Loss Harvesting

• Gain Offsetting: If you have taxable investment accounts, consider tax-loss harvesting to offset any capital gains. This strategy may help reduce your tax liability and improve your overall investment returns.

5. Give Yourself a Holiday Gift by Investing in Your Future Self

• Holiday Bonus: If you receive a holiday bonus, consider investing it in your retirement accounts. This can be a meaningful way to give yourself a gift that will benefit you in the long-term.
• Automatic Contributions: Set up automatic contributions to your retirement accounts. This is a great way to stay disciplined and consistent, while also offering yourself a generous holiday gift. After all, there is no greater gift than the potential of a prosperous future. Be sure to check for contribution limits on the IRS Website.

6. Review Your Overall Retirement Plan

• Wealth Advisor: Schedule a meeting with a Wealth Advisor to review your retirement plan. They can provide personalized advice and help you stay on track to meet your retirement goals.

By implementing these strategies, you are setting yourself up for a more secure and comfortable retirement. A Wealth Management by CommunityAmerica Wealth Advisor can review your retirement plan with you to help ensure that you’re on track to achieve financial peace of mind.

Neither Wealth Management by CommunityAmerica nor its financial advisors provide tax advice. For tax advice, please speak with a qualified tax professional.