The year is quickly drawing to a close. You may be busy wrapping up projects at work, planning your holidays, or even thinking about resolutions for 2019. This is also a great time to review your financial strategy. You can use this time to review the past year and identify areas for adjustment in the coming year. Below are a few important questions to consider as you review your retirement strategy. If you haven’t reviewed your strategy in some time, now may be the right time to do so. A financial professional can also help you look at your strategy with fresh eyes and identify areas for change. How much should you contribute next year? Do you use a 401(k) plan to save for retirement? If so, you’re not alone. The 401(k) is a popular and effective savings vehicle because it allows for tax-deferred growth and employer contributions, both of which can help you accumulate retirement assets. In 2019 the maximum 401(k) contribution increases to $19,000.1 If possible, look at your budget and see if you can increase your contributions. Even a small increase can have a big impact over time. You also may want to contribute to an IRA. You can contribute up to $6,000 to a traditional or Roth IRA.1 An IRA can offer additional opportunity for tax-deferred growth, along with other tax-favored treatment. Your contributions to a traditional IRA could be tax-deductible. Withdrawals from a Roth IRA after age 59½ are tax-free. Contributions to an IRA could help you reach your retirement savings goal. What’s the right allocation for you? It’s natural to become more conservative in your investment approach as you get closer to retirement. You have less time to recover from a market downturn. You may have less tolerance for risk and volatility. Discuss your allocation with your financial professional to see if you should take a more conservative approach. If you haven’t adjusted your allocation in several years, it may be time to shift to a more conservative strategy. You also may want to consider an annuity as part of your planning. Annuities offer a variety of ways to minimize risk. Some offer downside protection against loss and predictable interest payments. Others offer a guaranteed* lifetime income stream in retirement, regardless of market performance. Your financial professional can help you determine whether an annuity is right for you. Are you exposed to any risks? One financial emergency could be all it takes to upend your retirement strategy. You could face disability or significant medical costs. A job loss could disrupt your ability to save. Fortunately, you can use insurance to protect against many risks. Take a look at your protection strategy to see if there are any gaps. Do you have sufficient life insurance to protect your family in the event of your death? Are you protected against long-term disability? If you’re approaching retirement, have you considered how you might pay for future long-term care costs? Again, a financial professional can help you answer these questions and develop a strategy. Ready for your year-end review? Let’s talk about it. Contact us today at DSM Financial. We can help you analyze your needs and develop a strategy. Let’s connect soon and start the conversation. 1https://www.irs.gov/newsroom/401k-contribution-limit-increases-to-19000-for-2019-ira-limit-increases-to-6000 *Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values. Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. 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 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 or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency. 18184 - 2018/10/22
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