It’s hard to believe we are more than halfway through 2017. With five months left in the year, now is a great time to assess how well you’ve been saving for retirement. Here are some questions to ask yourself when analyzing your success.
- Are you maxing out your 401(k) contributions? If you are under the age of 50, you can defer paying income tax on up to $18,000 that you contribute your 401(k) plan. If you are age 50 or older, you can deposit a maximum of $24,000 in 2017.
- Are you utilizing your employer match? Typically, companies have a minimum amount that you must contribute to receive the match. Some companies also have a vesting schedule before you can receive the full match. Work with your employer’s Human Resource Department to make sure you are maximizing your employer match, which is “free money.”
- Are you fully funding your IRA? You can deposit up to $5,500 if you are under age 50 and $6,500 if you are age 50 or older into an IRA account. Note that IRAs have a later contribution deadline than 401(k) plans. You can deposit money until April 15, 2018 and have it count towards the 2017 tax year.
- Are you rebalancing your portfolio? Most people set their asset allocation when they start to save for retirement. With the rise and fall of the stock market, your allocations could fall out of line with your risk tolerance and goals. Work with your CERTIFIED FINANCIAL PLANNER(TM) to discuss how your investments align with your goals.
Remember, there is still time to adjust your savings to meet your retirement goals.
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