Preparing for retirement is something that you should be doing all year long, but there are certain things you’ll want to check off your list at the end of the year. By following through with these steps, you can set yourself on the path to financial security.
Let’s cover some of the best end-of-year tips for securing your retirement. With 2022 just around the corner, you’ll be right on target to hit your retirement goals.
Contribute to Your 401(k) Plan
Since Social Security isn’t enough to support you on its own, you’ll need to have other sources of income. For many people, one of the best nest eggs is a 401(k) plan, or employee-sponsored retirement plan.
You may find that your company offers a match if you contribute a certain amount. This “free” money can make a huge difference in your nest egg and help you build retirement security. If you haven’t earned your full employer match this year, contribute as much as you can in the next month, and make a plan to max out this match in 2022.
Look Over Your Social Security Earnings
Even though Social Security won’t cover your entire retirement, it’s still an important source of income. This is why you’ll want to make sure that you’re getting your full benefits.
Ideally, you should be checking your earnings record every year to make sure you’re getting full credit for the money you’ve put into Social Security. If you notice any discrepancies, correct the record as soon as you can. It’s easier this way because you’ll have the documentation in hand.
To check your earnings record, sign into your mySocialSecurity.gov account.
Max Out Your Tax-Advantaged Retirement Plans
Your 401(k) plan isn’t the only retirement account you should max out. Also look into getting help with a Roth or traditional IRA. You have until tax day in April to contribute to your IRA for the 2021 tax year, but it’s smart to get a head start on them now.
Roth and traditional IRA plans are typically matched by employers at the same rate as traditional 401(k) plans. You can easily bulk up your investment account by contributing to these accounts and earning as much of your employer match as possible.
Catch Up with Your Financial Advisor
You should meet with your financial planner in NJ at least once a year to assess your savings and investments. If you haven’t met with your financial advisor in 2021, be sure to schedule an appointment. The end of year is a good time to look over your progress and determine what you could do better in the next year to increase your nest egg and align yourself for a healthy retirement.
Social Security and your savings will most likely be your two main sources of income during retirement, so it’s important to keep on top of them. Whether retirement is just around the corner or a while out, it should not be an afterthought. Follow these tips and set up an appointment with your financial advisor as you head into 2022.
Let’s cover some of the best end-of-year tips for securing your retirement. With 2022 just around the corner, you’ll be right on target to hit your retirement goals.
Contribute to Your 401(k) Plan
Since Social Security isn’t enough to support you on its own, you’ll need to have other sources of income. For many people, one of the best nest eggs is a 401(k) plan, or employee-sponsored retirement plan.
You may find that your company offers a match if you contribute a certain amount. This “free” money can make a huge difference in your nest egg and help you build retirement security. If you haven’t earned your full employer match this year, contribute as much as you can in the next month, and make a plan to max out this match in 2022.
Look Over Your Social Security Earnings
Even though Social Security won’t cover your entire retirement, it’s still an important source of income. This is why you’ll want to make sure that you’re getting your full benefits.
Ideally, you should be checking your earnings record every year to make sure you’re getting full credit for the money you’ve put into Social Security. If you notice any discrepancies, correct the record as soon as you can. It’s easier this way because you’ll have the documentation in hand.
To check your earnings record, sign into your mySocialSecurity.gov account.
Max Out Your Tax-Advantaged Retirement Plans
Your 401(k) plan isn’t the only retirement account you should max out. Also look into getting help with a Roth or traditional IRA. You have until tax day in April to contribute to your IRA for the 2021 tax year, but it’s smart to get a head start on them now.
Roth and traditional IRA plans are typically matched by employers at the same rate as traditional 401(k) plans. You can easily bulk up your investment account by contributing to these accounts and earning as much of your employer match as possible.
Catch Up with Your Financial Advisor
You should meet with your financial planner in NJ at least once a year to assess your savings and investments. If you haven’t met with your financial advisor in 2021, be sure to schedule an appointment. The end of year is a good time to look over your progress and determine what you could do better in the next year to increase your nest egg and align yourself for a healthy retirement.
Social Security and your savings will most likely be your two main sources of income during retirement, so it’s important to keep on top of them. Whether retirement is just around the corner or a while out, it should not be an afterthought. Follow these tips and set up an appointment with your financial advisor as you head into 2022.
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