Estate Planning Attorney with Gilfix & LaPoll Suggests Retirement Savings Tips
Palo Alto, CA (Law Firm Newswire) December 17, 2013 – A prominent estate planning attorney says that autumn is the season to take stock of one's retirement savings.
“As we draw close to the end of the year, it is a good time to think about whether your retirement savings plan is on track,” said Michael Gilfix.
For many people, a 401(k) is a key part of their retirement savings plan. If an employer matches contributions, then it is a good idea to contribute at least the amount that will be matched. But according to Gilfix, one may want to contribute even more (up to the allowable maximum per year). The end of the year is a good time to reassess one's contributions.
“Many people contribute just the amount that their employer matches, but you may want to consider contributing more, up to the maximum, which is $17,500 per year,” said Gilfix, a Palo Alto attorney. “A person age 50 or older can contribute an additional $5,500.”
Gilfix said that 401(k) plans are a smart way to save because funds are deducted from one's paycheck before taxes. The savings are tax-deferred until they are withdrawn during retirement.
Gilfix said that a Roth IRA is another good way to save for retirement.
“While a traditional IRA grants a tax break on money deposited into the account, a Roth IRA gives you a tax break on the money you withdraw during retirement,” said Gilfix. “For 2013, the maximum contribution to a Roth IRA is $5,500, and people age 50 or older can add an additional $1,000.”
Gilfix said that one should take stock of one's retirement savings plan at least once each year, including investment portfolios. Make sure that investments are balanced; rebalancing one’s assets is a crucial step to keeping investments at the right mix of performance and stability.
“If you have investments in stocks and bonds, now is an excellent time to take a close look and see how they have been performing, and what other options are available to you,” said Gilfix. “It is important to maintain a balanced portfolio.”
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