4 Simple Ways to Maximize Your Retirement Savings

Retirement

4 Simple Ways to Maximize Your Retirement Savings

Posted by Infinite Wealth Advisors, LLC
3 years ago | September 19, 2016

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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