Year-End Retirement Savings Resources: From the Horse’s Mouth
Dylan Telerski / 4 Dec 2019 / Ubiquity Insights
As we prepare to close out 2019, it’s important to stay focused on your financial goals during this very busy time of year.
Our team of experts spoke with some of the country’s leading financial news sources to share how retirement savers can get in shape for a strong start to 2020. Here are our top suggestions:
If You Aren’t Participating In Your Company’s Retirement Savings Plan, Enroll.
When it comes to saving for retirement, the hardest but most important step is getting started, according to our Founder and CEO Chad Parks.
Chad spoke with Grow, a personal finance site affiliated with CNBC, to explain why it’s critical to reconsider taking advantage of your workplace retirement benefits during open enrollment season, which typically occurs during the last few months of the year. Chad also explained the benefits of contributing to a 401(k) and why, even if your company isn’t offering a match, it pays to participate and take advantage of tax savings.
Increase Contributions to Your Retirement Savings Account.
Every fall, the IRS announces new contribution limits for retirement savings accounts for the upcoming year. These guidelines are incredibly important for savers as new restrictions, or lack thereof, can have a big impact on your nest egg over time.
In the new year, 401(k) participants will be able to contribute an extra $500 to their accounts for a total annual limit of $19,500, while the annual contribution limit for IRA accounts remains unchanged at $6,000.
FoxBusiness.com and Bankrate sought expert insight from our Senior Vice President, Andrew Meadows, on these new contribution limits for 2020. He explained why that extra $500 of wiggle room might not seem like a lot for 401(k) savers, but it will make a big difference over time thanks to the magic of compound interest.
Calculate Your Anticipated Rate of Return for Retirement.
While it’s critical to consider your savings rate for the upcoming calendar year, it’s equally important to start thinking about how much income you’ll need in retirement. Have you taken into account recurring expenses, such as car payments, in addition to surprise expenses like medical bills?
Chad recently spoke with MarketWatch to explain why neglecting future expenses is one of the biggest oversights for savers and how you can structure your savings strategy now to properly account for this.
Pay Yourself First and Prioritize Retirement Savings.
Let’s face it. With pensions nearly extinct and Social Security funding at risk, we have to rely on ourselves to establish and fortify our nest eggs. Thankfully, millennial savers have already accepted this reality according to a recent study from Wells Fargo.
Chad joined Yahoo! Finance live and on-set to urge all savers to keep these realities in mind as we move into the new decade. He explained why putting retirement savings as a top-line item on your budget can set you up for success in the new year and beyond.