The Informed Investor
5 Considerations When Retirement Planning in 2021
February 6, 2021
If you’ve let retirement planning fall to the wayside this year, you’re not alone. With many small businesses struggling and even some professionals being furloughed, saving for retirement isn’t as much of a priority as having sufficient funds to make payroll, pay the mortgage, and meet other non-negotiable obligations. Now that vaccines are being rolled out, there is a light at the end of the tunnel—we hope things will return to normal by the end of the year or sooner. This also means it is time to pick up where you left off when it comes to your retirement planning. Here are some smart strategies to help you get back on track.
Hire a Financial Advisor
Many people enjoy managing their own investments, but it’s difficult to achieve the breadth and depth of knowledge of a qualified financial advisor. At ICC, our advisors aren’t just experienced and educated in retirement planning, they also continually increase their knowledge to retain their designations of Certified Investment Management Analyst (CIMA® and Accredited Investment Fiduciary Analyst (AIFA). You’ll never have to wonder if our recommendations are made with your best interests at heart because we adhere to the fiduciary standard, which means we’ve eliminated conflicts of interest.
Use Catch-Up Contributions to Maximize Your Savings
Anyone over the age of 50 can make additional “catch-up” contributions to their 401(k) and IRA. This means that for a 401(k), you are permitted to contribute $26,000 instead of $19,500, and those with an IRA can contribute $7,000, rather than the standard $6,000 for anyone younger than 50.
Think About a Roth Conversion
Investors who have a traditional IRA may wish to consider converting to a Roth IRA depending on your circumstances. Unlike a traditional IRA, you’ll have to pay taxes now, but withdrawals later in life are tax-free. Our advisors, including our in-house CPA, can consult with your accounting professional to help you decide the best strategy for your retirement.
Pay Off Any 401(k) Loans
If you have had to take out a 401(k) loan this year, pay it off as soon as possible. While having that safety net can be useful in situations like the COVID-19 pandemic, taking money out of your 401(k) means that you are losing out on valuable growth potential. It is also common for employers to bar you from making new contributions until your loan is paid off, which can prevent continual funding for your retirement.
Should you have some disposable income, now is a good time to consult with a financial advisor about investments to boost your retirement savings. Many investments are designed to adjust your level of risk based on your age, while a strategy known as dollar-cost averaging can effectively compensate for market volatility. Another way in which our advisors help you to manage the uncertainties of the market is by designing a customized, well-diversified portfolio. Your ICC financial advisor can assist you with building a portfolio structured to weather economic volatility.
Learn More About Retirement Planning With ICC
The financial advisors at ICC are hard at work researching current market conditions and translating that knowledge into retirement planning strategies that can benefit you. We have been providing wealth management and investment management services since our founding in 1987. As one of the largest independent financial planning firms in Nevada, we hold ourselves to a higher standard: the fiduciary standard. This means we have eliminated or disclosed possible conflicts of interest; we do not sell our own investment products nor do we receive commissions, so our only goal is helping you achieve your financial objectives.
If you have $1,000,000 or more in investable assets, contact us today at 702-871-8510 to learn more about our retirement planning services. We are here to help you work to achieve your investment goals.
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