For many people, the primary purpose of investing money is to plan and save for retirement. Investing can be a great way to build up funds over the years and prepare for a comfortable and timely retirement.
At Wasatch Peaks, we’re here to help. Our investment offerings include several ways you can help supplement your retirement funds, with options for people of all ages and in various financial situations. Our experts are also here to help you by providing their expertise in several retirement-related areas – with that in mind, let’s look at a few areas you should be considering at least once or twice a year when it comes to retirement savings.
Whatever kind of money you’re putting into retirement funds, you need to spend significant time thinking about the ways this money is being invested. Particularly if you’re investing large sums. Having a balanced portfolio is very important – you don’t want to have all your eggs in one basket, so to speak.
We generally recommend getting more conservative as you age, particularly after you cross age 50 and get within a decade or two of approaching actual retirement. This is because when you’re younger, you have a bit more flexibility and room for mistakes; if you make a bad investment in your 20s, you have a lot more time to recover from it than you do if you make the same mistake for a sizable portion of your retirement fund in your late 50s.
Also vital to your check-ins on your retirement is the actual amounts you’re contributing. Some kinds of retirement accounts have maximums on the amounts you can contribute – if you’re pushing up against yours, consider expanding your portfolio to new accounts.
In addition, make sure you’re taking advantage of all your resources. Many employers offer matching programs for savings, and you should always be capitalizing on these if this describes your company. Look for ways to try and raise your overall contributions by at least 1 percent per year.
There may be certain cases where you have to consider rolling over certain retirement accounts into others. One common example here is if you have a 401(k) account sponsored by an employer, but then you change jobs to an employer that does not offer one, in this case, you might have to roll the 401(k) into a Roth account or an IRA, which might come with some tax considerations that you will have to be aware of. Our advisors can help if this is the case for you.
In some cases, major life developments will change your retirement plans. These might include getting married or having a child, or they could be losses like a designated beneficiary. Maybe you’ve changed jobs and need to complete an account roll-over. Your yearly or twice yearly check-in is a good time to assess these areas and make any changes needed.
For more on checking in on your retirement properly, or to learn about a car loan, mortgage loan or small business loan along with any of our other financial services, speak to the pros at Wasatch Peaks today.