{"id":49048,"date":"2024-03-25T06:00:32","date_gmt":"2024-03-25T06:00:32","guid":{"rendered":"https:\/\/bulmanwealth.com\/?p=49048"},"modified":"2024-04-12T16:55:03","modified_gmt":"2024-04-12T16:55:03","slug":"late-start-saving-three-ways-to-save-more-for-your-retirement","status":"publish","type":"post","link":"https:\/\/bulmanwealth.com\/late-start-saving-three-ways-to-save-more-for-your-retirement\/","title":{"rendered":"Late Start Saving? Three Ways to Save More for Your Retirement"},"content":{"rendered":"
Are you concerned you might have gotten a late start on your retirement savings? You\u2019re not alone. Over 60% of Americans feel they are lagging in their retirement savings efforts.<\/span><\/p>\n The good news? It\u2019s never too late to start saving for your financial future.\u00a0<\/span><\/p>\n In our blog, we\u2019ll look at various ways you can begin to catch up with your retirement savings efforts. As <\/span>Roseville retirement planners<\/a><\/strong>,<\/strong> we focus on helping individuals create comprehensive retirement plans that often include ways to bolster their retirement savings efforts, even if they have started a little late in life.<\/span><\/p>\n For the most part, gone are the days when you would work for one company for your entire career and then receive a guaranteed pension payment for the rest of your life. While a few companies and government agencies still have pension plans, most businesses provide tax-deferred retirement savings options, such as 401(k)s, to their employees.<\/span><\/p>\n Rather than making funding the retirement plan the company’s responsibility, it is now the employee’s responsibility, although companies may make matching contributions. This dramatic change started in 1974 when the Employee Retirement Income Security Act (ERISA) was passed.\u00a0<\/span><\/p>\n Within a few years, there was a massive shift from defined benefit plans to defined contribution plans that made employees responsible for retirement savings. The good news is that these savings accounts were funded with pre-tax dollars, and investment returns were taxed until they were distributed out of the accounts.<\/span><\/p>\n Regardless of age, you should consider maximizing your contributions, especially if you need to catch up with your savings efforts.<\/span><\/p>\n Here\u2019s a look at the 2024 contribution limits.<\/span><\/p>\n <\/p>\n <\/p>\n Here\u2019s an example of how your contributions can help to lower your taxable income:<\/span><\/p>\n Let\u2019s say your annual income is $125,000, and you contribute $10,000 to your 401(k) in 2024. Your taxable income would be reduced to $115,000. This means you only pay income taxes on $115,000 instead of the total $125,000, which can lead to significant tax savings.\u00a0<\/span><\/p>\n The actual tax savings would depend on your tax bracket; for instance, if you are in a 24% tax bracket, this reduction in taxable income could save you $2,400 in taxes for the year ($10,000 contribution x 24% tax rate).\u00a0<\/span><\/p>\n It’s important to remember that 401(k) contributions have annual limits set by the IRS, and any contributions above these limits would not be eligible for the tax deduction in that year.<\/span><\/p>\n If you’re over 50, the IRS allows you to make additional contributions to your retirement accounts, aptly named “<\/span>catch-up contributions<\/a><\/strong>.<\/strong>” This is a terrific opportunity to accelerate your retirement savings. Here\u2019s the breakdown:\u00a0<\/span><\/p>\n While there are many things you can do to improve your savings and spending habits, we\u2019ve listed five of the more common tactics that you can use to help boost your retirement savings efforts in Roseville:<\/span><\/p>\n#1: Maximize Retirement Savings Accounts<\/b><\/h2>\n
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Listen to our newest podcast episode: Important Age Milestones of Your Retirement Timeline<\/i><\/b><\/a>.<\/i><\/b><\/h3>\n
#2: Leverage Catch-Up Contributions<\/b><\/h2>\n
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#3 Improve Your Savings Habits<\/b><\/h2>\n
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About Bulman Wealth Group<\/b><\/h2>\n