Improve Your Retirement Plan This 2017

Have you taken a closer look at your future retirement plan?  Some people may not give much thought to their retirement, but there are many good reasons why you should bother creating a realistic and solid retirement plan.

CNN Money reports about  43% of American workers have less than $10,000 in savings, 27% said they have less than $1,000 and only 16% said they are confident with their retirement savings.  These figures are based on the Employee Benefit Research Institute’s annual Retirement Confidence Survey.

Apparently, many workers think that they are too young to think about retirement and do not feel the urgency to do the necessary preparations.  However, if you will ask financial advisors, you would get a positive response regarding the need to set up a retirement savings as early as possible.  Consider the following retirement plan tips that you can apply this year.

1. Pay more to your 401(k) fund. 

The IRS has increased the maximum allowable contribute for an employee from $500 to $17,000.  Are you regularly contributing to your 401(k) fund?  If you’re an employee, you should take advantage of the opportunity that your employer will match every cent of your contributions so this is a great time to pay as much as you can to build up your retirement savings.  On the other hand, you should also check if you are nearing to max and make the necessary adjustments.

{Read Financial Checklist for People in their 30s}

2. Apply for Roth IRA.

If you are self-employed, see if you are qualified for Roth IRA.  To be eligible, the adjusted gross income for single income tax return filers must be less $110,000 and $173,000 for joint filers.  It’s a good idea to ask an attorney about your privileges and limits before applying for a Roth IRA to make sure that you can make the most out of its provisions.

3. Don’t forget to take the RMD. 

The RMD or Required Minimum Distribution is the required minimum amount that a retiree must take out once he/she reaches the age of 70 and a half.  The distribution amount varies from year to year, and is calculated by dividing the account’s year-end value by the distribution period.  Take note that RMD amounts that are not taken out on time will incur 50% tax.

4. Consider post-retirement costs.

An effective retirement plan is one that is specific and based on facts.  It’s a good idea to sit down and consider possible expenses you will be confronted with once you retire.  Aside from medical and health care issues, don’t forget to include day-to-day costs, travel expenses, etc

{Read 6  Difficult Decisions for Retirees}

A lot of retirees choose to spend their retirement cash on a vacation and of course, there is nothing wrong with rewarding yourself with a much-deserved leisure time in an amazing destination.  However, it’s very important to make sure that you will still have enough finances to last your lifetime.  Are you planning to stay on the same house or will you be relocating to another State or country?  These are important considerations that you should ponder about today so you can be more prepared, both emotionally and financially.

 

IS THIS ARTICLE HELPFUL? SHARE THIS OR LEAVE A COMMENT.

Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

We will be happy to hear your thoughts

Leave a reply

NHBS Inc © 2024

NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

Privacy Policy Terms of Use

NHBS Inc © 2022

NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

Privacy Policy Terms of Use

Business Loans

Consumer Loans

New Horizon
Logo
Enable registration in settings - general