Intentionality and Your Retirement - January 20, 2021
Did you know—
- Almost half of all Americans do not have a 401k account.
- Two-thirds do not have an IRA (Individual Retirement Account).
- One-quarter of Americans have no retirement savings.
Source: Federal Reserve Report on the Economic Well-Being of U.S. Households in 2018
Be intentional, set goals
- Sign up for your company’s 401k. At a minimum, take full advantage of your company’s match. The match is free money. Leave none behind.
- Fund a traditional IRA or consider a Roth IRA if you are eligible. There are tax advantages to both accounts.
- Are you self-employed? A SEP-IRA is an excellent vehicle that provides generous contribution limits.
- Consider a spousal IRA if your spouse does not work and you file a joint tax return.
Do not plan to fail. Instead, make a plan in 2021. A mid-course adjustment may be necessary.
Simply put, Social Security is a supplement. It won’t cover all expenses in retirement.
That said, the guideposts provided are broad-based. How you approach retirement may be vastly different from your family or friends.
Consider the ideas as a framework that points you in the right direction.