Planning for retirement isn't just a matter of how much you save, but also where you save it. This post looks at the roll of retirement accounts (like IRAs and 401(k)s), how "regular" investment accounts can help get you retirement-ready, and understanding how timeline and risk factor in.
Maximizing contributions in the right accounts each year can help you save tax dollars, both while you're building wealth and once you are financially independent. It's not just a question of how much you can save on taxes now, but also how it impacts you 10, 20, or 50 years from now.
Think about your answers for the following questions. If you can answer "yes" to all (or even most) of these questions, you're probably doing great! The questions to which you answer "no" or even "I don't know" are signs that there is room to improve.
Have you maximized your IRA contributions?
Have you contributed to self-employed retirement accounts?
Do you hold investments in taxable, pre-tax, and tax-free accounts?
Do you have a tax-efficient strategy for distributing money from retirement accounts?
Would transferring money from a tax-deferred account (like a Traditional IRA) to a tax-free account (like a Roth IRA) make sense this year?
Do you know how much money you need to make work optional?
Do you need to tick all of those boxes in order to retire someday? No, of course not. But these questions can help point you in the right direction if you feel like you should be doing more to save for the future.
Want to talk about your path to financial independence? Shoot me an email to start the conversation. We can brainstorm some ideas to get you there faster, smarter, and with less stress.
If you want to open & fund new tax-advantaged account for the current tax year, make sure you get started well in advance. While some accounts (like IRAs) allow you to contribute up to the tax filing deadline next year, you still need to open accounts in 2024 if you want contributions to count for this year.
Whew, so much information! Want to ask a question without a sales pitch? That's exactly what weekly Office Hours are for! We can have a quick conversation with zero stress and no strings attached.
Thanks,
Timothy Iseler, CFP®
Founder & Lead Advisor
Iseler Financial, LLC | Durham NC | (919) 666-7604
Iseler Financial helps creative professionals remove stress while taking control of their financial lives. We'll help identify current your strengths and weaknesses, clarify and refine your long-term goals, and prioritize decisions to improve your financial well-being now and later. Reach out today to take the first step.
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