As we begin another year it’s helpful to think ahead about saving for retirement, which lasts for about 20 years according to the U.S. Department of Labor. Unfortunately, only half of Americans have calculated how much money they need to save for retirement, the US Department calculates. If your employer offers a 401(k) or similar plan, take advantage of it. If it’s not offered, suggest that your company initiate a plan.
According to Kate Dore, a reporter with CNBC, the IRS has announced new 2024 investor contribution limits for 401(k) plans, individual retirement accounts and other retirement accounts. The employee contribution limit for 401(k) plans is increasing to $23,000 in 2024, up from $22,500 in 2023, and catch-up contributions for savers age 50 and older will remain unchanged at $7,500. The new amounts also apply to 403(b) plans, most 457 plans and thrift savings plans.
Putting money away for retirement is a habit we can all benefit from. Below are a few tips from Bankrate.com:
- Join loyalty programs. This can save you money at the gas pump, grocery store or restaurants.
- Make a grocery list. Bringing a list to the store — and sticking to it — helps avoid impulse purchases and buying things you don’t really need.
- Prepare your meals at home. With some advance preparation, you can have meals and snacks at the ready. This will save you the cost (and often extra calories) of eating restaurant food.
- Disable retailer notifications. Avoid impulse purchases by unsubscribing from promotional emails and turning off app alerts from retailers.
Of course there are longer-term savings plans, and it could be useful to speak to an officer where you bank or, even better, to a financial advisor.
Saving for College
What other steps can you take in 2024 that could help you and your family financially? If you’re planning to send children to college there are a number of ways to save, according to Kathryn Flyn, Editor in Chief of Saving for College:
“If you have a child or children, you plan to send to college one good way is opening a 529 Plan. It’s a good option to save enough money for college. There are tax benefits that are hard to compete against by the other college savings options because it was created to benefit those saving for education.”
Whatever your financial needs are in this new year the Barnum Financial Group is here to help. Please don’t hesitate to get in touch with your financial advisor or let us introduce you to an advisor who could meet your needs.
