Include Retirement Planning on Your Holiday Gift List

Mike Gann Financial Planning, Retirement Planning

It’s that time of year again. The holidays are here. If you’re like most people, you’re busy trying to find the perfect gift for your spouse, children, parents or other loved ones. You also may want to consider a gift for yourself: a review and adjustment of your retirement strategy.

According to a Gallup survey, 54 percent of Americans are worried about being able to afford retirement.1 If you’re among that group, now may be the time to take action. You probably don’t think of retirement planning when you think about the holiday season. However, the year-end can be the perfect time to review your plan and make changes. It’s also a great time to adjust your planning and savings as you head into the new year.Give yourself the gift of a solid retirement strategy this holiday season. A financial professional can help you conduct a full review and recommend possible changes. Below are a few steps to consider:


Maximize your IRA contributions.


An IRA can be one of the most powerful savings tools at your disposal. They offer a variety of tax benefits. In a traditional IRA, you may be able to make tax-deductible contributions. Your growth is also tax-deferred until you take distributions. In a Roth IRA, you don’t get deductions for your contributions, but you get tax-deferred growth and tax-free withdrawals after age 59½.

The 2018 contribution limit for traditional or Roth IRAs is $5,500. That number increases to $6,500 if you are age 50 or older. If you haven’t yet hit those limits, see if you can make another contribution soon. You can actually contribute all the way until April 15, 2019, and still count it as a 2018 contribution.2


Increase your 401(k) contributions in 2019.


Millions of Americans use a 401(k) or other employer-sponsored retirement plan to save for retirement. They’re effective because they offer tax-deferred growth and employer matching contributions. Next year, the contribution limit for 401(k) and 403(b) plans is increasing to $19,000. If you’re age 50 or older, you can also contribute an additional $6,000 in catch-up contributions.3

You may not be able to contribute the full maximum amount, but even a gradual increase in your contributions can be effective. Consider that your contributions will grow tax-deferred over years and possibly decades. An increased contribution could also lead to increased matching contributions from your employer.


Project your retirement income.


How much income will you have in retirement? Do you know how much you can expect to withdraw from your savings? How much will you receive from Social Security or a pension? If you’re approaching retirement and don’t know the answers to these questions, give yourself a gift this holiday season and meet with a financial professional to develop a retirement income estimate.

A financial professional can project your potential income from Social Security, a pension, savings or other sources. That can help you determine whether you’re on the right path or if you need to make adjustments. You could also examine tools to protect your income, like an annuity.

Ready to retake control of your retirement strategy this holiday season? Let’s talk about it. Contact us today at Advantage Retirement Services. We can help you analyze your needs and develop a plan. Let’s connect soon and start the conversation.






Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.

18280 – 2018/11/28