Following a turbulent end to 2018, financial markets are off to a fast start in 2019. The U.S. stock market has recouped its December losses with both large and small company stocks making sizeable gains. Foreign stocks rose over 10% in the first quarter but are still clawing their way back from a lackluster 2018. Quietly, bonds had a stellar quarter (considering the low interest rate environment of the last decade), notching their highest quarterly return since early 2016.
For most Americans, the Roth Individual Retirement Account is an excellent way to save for retirement.
Once the money is deposited into a Roth IRA, it can potentially grow tax-free for many decades. And when retirees eventually tap into these accounts, they won’t owe tax on the withdrawals.
One of the most attractive aspects of the Roth Individual Retirement Account is that you can take withdrawals tax-free. The more the Roth IRA grows over time, the better your eventual tax break.
How much have you saved for retirement for 2017?
There is still time to boost your savings. And at the same time set goals for what you can set aside next year.
While 2017 contributions to workplace plans such as a 401(k) or 403(b) have ended as of December 31, 2017, you can put money into an Individual Retirement Account until April 17, 2018.
Are you contemplating retiring soon?
Retiring takes considerable planning, but here are some tips to get you started on the process:
Are you very confident that you will end up enjoying a comfortable retirement? If so, you’re in the minority. Only 18% of Americans are very confident about their future retirement prospects.
Your 50th birthday provides new opportunities to secure your financial future. For example, it gives you access to the “catch-up” provisions that allow you to contribute extra amounts to retirement accounts each year, which are not available to younger earners.
If fattening your retirement nest egg is a priority, here’s a line-up of the maximum contributions that you can make for various retirement accounts in 2017:
Many clients today are caught in the “sandwich generation” where they are caring for elderly parents as well as their children. An important thing for these caregivers to remember is to care for themselves! As in the safety discussion on an airplane, you put on your own oxygen mask first. You can’t help anyone else when you don’t have enough oxygen yourself.
Many Americans who rely on financial professionals to manage their investments have long assumed their advisors are providing them with the very best financial advice.
Unfortunately, too often that has not been the case.
Some advisors are obligated to put their clients’ interests first when making financial recommendations, but many others are not.