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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

  1. 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.
  2. Fund a traditional IRA or consider a Roth IRA if you are eligible. There are tax advantages to both accounts.
  3. Are you self-employed? A SEP-IRA is an excellent vehicle that provides generous contribution limits.
  4. Consider a spousal IRA if your spouse does not work and you file a joint tax return.

Investor’s corner

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.

@LWMLLC