For some, especially during these tough market conditions, their retirement investments and savings may have declined. Due to this setback, your retirement timeline may have been pushed back, tightening your budget, making you work more years than you planned, and has put pressure on your overall retirement longevity. If this is you, you’re not alone! And there are opportunities you may have to boost your retirement savings to get back on track.
Contribute to a 401(k) or Traditional IRA to reduce your taxes for that year. Since 401(k) and Traditional IRA contributions are deducted from your income for the year the contributions were made, you can save on taxes by utilizing these instruments while putting more into your savings for the future. In addition, your employer may offer 401(k) matching for your accounts, meaning that they’ll contribute a certain amount based on what you contribute! For example, you could see a 5% boost to your contributions if your employer matches 5% of employee contributions. Taking full advantage of matching contributions can help you see your retirement investments grow and get back on track.\
In addition, you may not have known that your annual contribution limits for IRAs and 401(k)s increase by $1,000 once you hit 50! Suppose you’re looking to get your retirement accounts back on track. In that case, you could benefit extra by increasing your yearly contributions, letting more of your money benefit from a potential stock market rebound.
If you have other income sources or can still work full- or part-time, consider delaying the time you choose to officially claim Social Security benefits. If your market-exposed accounts took a hit, you don’t just have to hope for an immediate market rebound to get back on track. Instead, suppose you have supplemental income sources such as annuities, savings accounts, or even universal life insurance. In that case, you can wait until you’re 72 to claim Social Security to access a maximum benefit amount. That way, you can give your retirement accounts the time they need to recover from a market downturn before withdrawing from them.
Finding ways to improve your retirement strategy isn’t easy to do on your own. Some tools and strategies take professional knowledge to utilize and execute well, not to mention that making further mistakes with your retirement plan may cost you even more in penalty fees or taxes. But that’s where a financial professional can help guide you. Contact us at (540) 720-5656 to get started today.
Source: https://www.merrilledge.com/article/10-tips-to-help-you-boost-your-retirement-savings-whatever-your-age-ose
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Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. Megan is also a fully licensed Life, Health, and Annuity agent. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.
Amy Anderson joined the ILG Financial team in 2023 as the client relations coordinator. Her responsibilities include scheduling of appointments, annual check-up notifications, and annuity and required minimum distribution assistance. She is a graduate of Harding University with a degree in Computer Information Systems. Amy and her husband have two children and she enjoys reading, crocheting, music and spending time with her family.
Terri Center joined the ILG Financial team in 2019 as client services manager. She handles client records, application processing, and gathering information to provide a professional and friendly experience with all of our clients. Terri is a graduate of Oakland University. She is married and has two children. She enjoys hiking, family time, and puzzle challenging video games. She also likes to share her creativity in her canvas paintings and sewing projects.
Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.
Chase Lopez joined the ILG Financial team in 2020 as an advisor and obtained his