Good News: Save More for Retirement in 2019

//Good News: Save More for Retirement in 2019

Good News: Save More for Retirement in 2019

For Mark Roberts’ Use: As financial advisors, we frequently advise those planning for retirement to save all that you can. And now, we have some good news: Contribution limits for qualified retirement plans were increased for 2019, allowing you to set aside a bit more money for retirement.

If you participate in a 401(k), 403(b), Thrift Savings Plan (for government employees), or most forms of 457 plans, you can now contribute $19,000 to your retirement fund next year. That’s an increase of 500 dollars from 2018.

Remember, these contributions can be made on a pre-tax basis. So in addition to saving for your future, you will be effectively lowering your taxable income for the year. Every little bit of savings helps!

For those aged 50 and older, the catch-up contribution will remain the same. If you want to save additional funds for retirement, you can stash another $6,000 in your 401(k) or other retirement fund as listed above. Over the course of a decade or so, that extra savings can make a significant difference in your ability to retire on schedule.

For those who utilize an IRA to prepare for retirement, your contribution limit for 2019 is $6,000. The catch-up contribution remains $1,000 per year. Remember, contributions to a Traditional IRA are made on a pre-tax basis, with the withdrawals taxed in retirement. However, if you decide upon a Roth IRA, you can make after-tax contributions now and enjoy tax-free withdrawals once you retire.

For more information on retirement fund contributions, give us a call to schedule an appointment. In person, we can offer additional guidance more specific to your situation, and help you plan for a retirement that meets your values and priorities.

By |2018-12-06T18:51:42+00:00December 6th, 2018|Retirement|0 Comments

About the Author:

In addition to managing clients’ money and giving investment and diversification advice, Mark offers something that “the other guys” don’t - a unique approach to Retirement Tax Strategies and distribution. Time and time again, Mark meets with new clients who tell him they have a great relationship with their financial advisor but have never been offered information on this kind of approach to securing their financial futures. Mark has taken this feedback to heart and works tirelessly to ensure that his strategies focus on taxes and distribution. Mark started selling insurance for a major insurance company right out of high school to help put himself through college. After graduating with a degree in finance, he dove into estate planning on the financial side to set himself apart from other financial advisors. However, as changes were made to estate tax laws over time, Mark shifted his focus to income tax strategies. Mark’s philosophy is “the blue prints are more important than the wall paper or carpet.” The wall paper and carpet represent products like investments and insurance policies, whereas the blue prints represent the strategies. Once strategies that truly fit the client’s needs are put in place, our focus can shift to providing you with the right products. According to Mark, “It doesn’t matter what carpet we use if the walls are not in the right place.” Our approach to money management is designed to generate the largest alpha (quality) with the lowest standard deviation and beta (risk). By doing this, we help provide clients with the highest return on the lowest risk. Generating income for our retirees is also very important. Because withdrawing money from your portfolio hurts the account rather than helping it, our goal is to design income strategies to harm the portfolio the least making the money last longer.