Some potential ways to make up ground at mid-life.
Need to save more for the future? If you face the challenge of rebuilding or creating your retirement fund after 40, here are some steps that may help you.
Strive to max out your Individual Retirement Account or workplace retirement plan contributions. In 2017, you can put up to $5,500 in an IRA and $18,000 in a 401(k) or 403(b) plan. If you are 50 or older this year, you can contribute up to $6,000 to an IRA and $24,000 to a 401(k) or 403(b).1
Ask for a raise. See if you can earn more from your current job. If not, consider applying for one with better pay or retirement benefits, or explore additional income streams.
Generate less debt. Every dollar that doesn’t go to your creditors is a dollar you can put toward retirement. What unnecessary living expenses can you trim?
Think about staying in the workforce a little longer. For each year you keep working, you have one less year of retirement to fund-and one more year for your investment accounts and savings to potentially grow without being drawn down.
This will take discipline. Real progress is possible: if you are 50 and save and invest $15,000 a year at a 7% return, you could have more than $400,000 for retirement by age 65.* Let’s talk about the variables: when you want to retire, how much retirement income you may need, and where you stand right now in terms of savings and investments. Call or email me- I’m here for you.2
Qualified accounts such as 401ks and traditional IRA’s are accounts funded with tax deductible contributions in which any earnings are tax deferred until withdrawn, usually after retirement age. Unless certain criteria are met, IRS penalties and income taxes may apply on any withdrawals taken prior to age 591/2. RMDs (required minimum distributions) must generally be taken by the account holder within the year after turning 70 1/2
Securities offered through LPL Financial, member FINRA/SIPC. Investment advice offered through Patriot Financial Group, a registered investment advisor. Patriot Financial Group and Summit Star Financial are separate entities from LPL Financial. 1 forbes.com/sites/ashleaebeling/2016/10/27/irs-announces-2017-retirement-planscontributions-limits-for-401ks-and-more/ [10/27/16] 2 usatoday.com/story/money/personalfinance/2016/01/26/5-simple-ways-catch-up-yourretirement-savings/77718908/ [1/26/16] The information contained in this e-mail message is being transmitted to and is intended for the use of only the individual(s) to whom it is addressed. If the reader of this message is not the intended recipient, you are hereby advised that any dissemination, distribution or copying of this message is strictly prohibited. If you have received this message in error, please immediately delete. Stock investing involves risk including loss of principal. Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price This material was prepared for John A. Gordon and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note: Investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting, or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax, or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment. tracking #1-575332