4 Simple Ways to Maximize Your Retirement Savings

Filed under: Retirement

Happy Senior Couple on the Bow of a Sail BoatFor those who earn a higher-than-average income, a common mistake is thinking that you have time to worry about retirement later. After all, you have plenty of income to play catch-up, and right now you should be enjoying life, right?

You might have time to build a healthy retirement fund later, but there you’re overlooking one major factor by falling into this trap: Each year that you don’t max out your retirement savings, you could be costing yourself money in other ways!

Don’t miss out on matching funds. If your employer offers matching funds for retirement plan contributions, there is no reason not to take full advantage of the match each year. You can afford to save the maximum, and if you don’t, you’re turning down free money!

Retain more of your year-end bonus. Earning a large year-end bonus can feel fantastic, until it bumps you into a higher tax bracket. But if you divert that bonus into a tax-deferred retirement plan, you can lower your tax liability and therefore retain more of it.

Reap the benefits of a Roth IRA. If you earn a generous salary, you might not be eligible for a Roth IRA. But you can contribute to a non-Roth IRA and then convert it to a Roth. Once you reach retirement, you’ll be happy you made this decision, as you’ll enjoy tax-free distributions from the Roth account.

Consider an annuity. Signing an annuity contract won’t help you earn a tax break, but all contributions do grow with taxes deferred until retirement. You can invest in your future without triggering investment gains taxes each year during your working years.

The above examples are just that. They’re only examples of retirement planning moves you should consider. Schedule a consultation with us, and we can help you pinpoint your exact financial needs and capabilities, and make a plan for a more secure future.

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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 the 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, trust and estate, or investment advice. Infinite Wealth Advisors is not an investment advisory firm.  Investment Advisory Services provided by NAMCOA® – Naples Asset Management Company®, LLC, a federally registered investment advisor, website: www.NAMCOA.com .