A fresh new year is a great time to up your contributions to a retirement plan.  Some limitations have changed for 2012 and it is important for everyone that wants to do the maximum contributions to up their contributions in order to do just that.  Contact us today if you have any questions on your limits or your current retirement plan options.

• 401(k), 403 (b), most 457 plans and the federal government’s Thrift Savings Plan have increased to $17,000 from $16,500
• Catch-up contributions for those aged 50 and over for the above mentioned plans remains at $5,500
• Simple IRA Plan contribution limit remains at $11,500 and the catch-up contribution limit for Simple IRA Plans remain at $2,500
• The deduction for taxpayers making contributions to a traditional IRA is phased out for singles and heads of household who are covered by a workplace retirement plan and have modified adjusted gross incomes (AGI) between $58,000 and $68,000, up from $56,000 and $66,000 in 2011.  For married couples filing jointly, in which the spouse who makes the IRA contribution is covered by a workplace retirement plan, the income phase-out range is $92,000 to $112,000, up from $90,000 to $110,000.  For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is between $173,000 and $183,000, up from $169,000 and $179,000.
• The AGI phase-out range for taxpayers making contributions to a Roth IRA is $173,000 to $183,000 for married couples filing jointly, up from $169,000 to $179,000 in 2011.  For singles and heads of household, the income phase-out range is $110,000 to $125,000, up from $107,000 to $122,000.  For a married individual filing a separate return who is covered by a retirement plan at work, the phase-out range remains $0 to $10,000.

For complete information,click here to go to irs.gov

Utilizing this benefit offered by your employer is an essential key to saving for retirement.  This money is withheld pre-tax from your paycheck, which will lower your taxable income for that year (or post-tax if participating with a Roth 401(k)).  This money will grow tax-free until it is time for you to retire.  Many employers contribute to these plans with matching and/or profit sharing.  It is very important to understand your employer’s retirement plan so you are maximizing your contributions to get the maximum amount of match/profit sharing from your employer.

Contact us today if you need assistance determining the best plan for contributing to your employer’s retirement plan.

September 9th is National 401(k) Day!  This day is an annual celebration to promote the importance of participation in employer-sponsored profit sharing and 401(k) plans.  Ignoring these plans should  not be an option!  Do you stop for a coffee everyday?  Put that money towards your retirement instead!  Would you like to reduce your income taxes?  Participate in the retirement plan and do just that as the contributions are deducted before your taxes are calculated (except for Social Security taxes).  Does your employer offer a match?  If the answer is yes, realize you are throwing free money away by not  participating!  Do you have an old 401(k) from a previous employer?  Most employers allow you to roll your 401(k) balance into their plan and if they do not, you can open an IRA to capture those assets. 

Contact us today to discuss these options or for any assistance you may need!!

Even before the onset of the worst financial crisis since the Great Depression, many people wondered whether they were saving enough for retirement. Frankly, many weren’t. Now, post-meltdown, the question remains: Am I saving enough? Take the Kiplinger quiz to see if you are on track for a comfortable retirement and if not, how you can improve your chances.

Click here for the quiz!

Worried about Social Security and Medicare cuts?  So are thousands of people.  With our current economy and a climbing deficit, it leaves us wondering just how long these programs will last as is before going dry.  It also has many people taking Social Security at age 62 instead of waiting until 66 (which will give them an 8% boost in their check). 

An article by William Barrett in Forbes Magazine gives you a complete picture of what is happening.  Click here to read on…

If you have recently changed jobs, it is a good idea to take a look at your qualified retirement plan with your former employer.  Rolling this over into your own individual retirement account will give you more control and choice over investments while continuing to defer taxes. 

An article by Bill Bischoff discusses a few things to consider when wanting a tax-free IRA rollover.  Click here to read entire article.

So you set up your retirement plan say ten or 15 years ago, it’s time for a checkup!  The sooner you can make adjustments the better, especially if you are going to have to make some big changes in your plan.  One important factor is we are living longer.  Twenty years ago statistics said the average male could expect to live to age 80 and the average female to age 85.  In recent studies, these numbers are age 88 for males and 90 for females.  Now these are just averages, a good source which allows you to enter personal variables is livingto100.com.  One you have a better idea of your life expectancy, you can calulate how long your savings might last and determine if you will fall short. 

If there is a shortfall, then a thorough look at your portfolio is in order next.  Maybe your being too conservative for your portfolio to last the additional time.  That being said, we are not encouraging our clients to run out and load up on risky investments, but rather take a pro-active approach and find the right funds for your needs.  If it looks as if you are going to be extremely short of your needs, you may have to consider downsizing to a smaller home or taking a reverse mortgage to compensate for the shortfall.

Another item to look at is your spending habits.  You may have set up a budget at the beginning of your retirement, but ten or 15 years later, you have a much better idea of how much money you need.  It is a good reality check for people to keep tabs on what they are spending their money on.  Many people do not realize the money that is being spent on ATM fees and small items such as coffee or entertainment.

If things become tight and keeping up with your premiums for long-term-care insurance or any other insurance for that matter is becoming a problem, you may want to ask your children to help out.  It would be more economical for your children to help you pay the premiums than to allow the coverage to lapse.

Contact us today if it is time for a review of your retirement plan.

As we all know, men and women carry themselves differently. Their investment strategies vary as well. Men tend to be more confident in their ability to invest their money while women tend to be a bit more timid and less risky. Karen Blumenthal has written a wonderful article regarding this topic. One step she mentions is:

Start planning the kind of retirement you want to have. “Women aren’t thinking about this,” says MP Dunleavey, editor-in-chief of DailyWorth.com, which sends personal-finance and investing emails geared to women. “They aren’t letting themselves think or dream or daydream” about retirement. But, she says, if you can envision how you want to spend your time after you stop working, you might find it easier to develop more interest and knowledge in how to get to that goal.

Click here to read the entire article by Karen Blumenthal.

There are many ways you can save for retirement.  The majority of articles out there are based on investments, but there really are some simple ways to save money towards your retirement.  In an article by David Ning, he discusses 9 ways to save.

One example is:

Eliminate a few little expenses. Lattes are not the only small expenses you can cut out of your budget. Look at all the fees that you’ve paid in the last 6 months. Were they really necessary? Can you do anything to minimize fees and investment costs? A few dollars per fee won’t seem like much, but add in a few years of these fees and you can be looking at a pretty big balance.

Click here to read the rest of David Ning’s tips.