Tips and resources that everyone can use
Amp Up Your Savings
In 2017, anyone at least 50 years old can contribute up to $24,000 to a 401(k).1 Even if that amount seems beyond your reach, you should make it a goal to save more this year than last, and increase your savings by at least one percentage point a year. If your company’s retirement plan offers an employer-matching contribution, take advantage of the maximum amount allowed, if you can. Expect a raise next year? Consider setting aside half of it for retirement.
When does Medicare eligibility begin?
You qualify for Medicare if you or your spouse worked for at least 10 years in Medicare-covered jobs, are 65 years or older, and a US citizen or US permanent resident. You may also be eligible for coverage if you have a disability or have end-stage renal disease. To get an estimate of when you’re eligible and your premium amount, visit https://www.medicare.gov/eligibilitypremiumcalc/.
Fall is a great time to revisit your personal and financial goals. For example, have you set aside an emergency fund, covering at least six months of living expenses? Started to exercise an hour a day? Paid down high-interest debts? Started a college fund for the kids or your favorite nieces and nephews? Sometimes it’s helpful to break big goals into smaller bite-sized pieces. Writing them down is an excellent way to help you visualize success.
Tools and Techniques
How much should you spend, save, and insure each year to achieve a stable standard of living? That depends on a host of factors, including job changes, having children, retiring early and much more. ESPlanner is a free online planning tool that helps you make lifestyle decisions. Download at https://basic.esplanner.com/.
Corner on the Market: Basic Financial Terms to Know
Stretch IRA – Just as it sounds, a stretch IRA is a minimum withdrawal strategy designed to "stretch" the period over which earnings can be tax-deferred. This is a popular tax mitigation technique with inherited or "Beneficiary" IRAs. Essentially, the IRS allows you to take minimum annual withdrawals from such IRAs based on your life expectancy. Of course, withdrawals are taxed as ordinary income at your federal income tax bracket.
1 401khelpcenter.com, "401k and Retirement Plan Limits for 2017."
Disclosure: This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. LPL Financial and its advisors are providing educational services only and are not able to provide participants with investment advice specific to their particular needs. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.
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© 2017 Kmotion, Inc. This newsletter is a publication of Kmotion, Inc., whose role is solely that of publisher. The articles and opinions in this newsletter are those of Kmotion. The articles and opinions are for general information only and are not intended to provide specific advice or recommendations for any individual. Nothing in this publication shall be construed as providing investment counseling or directing employees to participate in any investment program in any way. Please consult your financial advisor or other appropriate professional for further assistance with regard to your individual situation.
About the Investment Advisor Representative:
Phil Scott, Sequent
Phil Scott has over two decades of experience in the Financial Services Industry. He is a Registered Representative with LPL Financial and Investment Advisor Representative with Advantage Investment Management (AIM).
Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Advantage Investment Management