What are you thankful for this holiday season? Time spent with family and friends? A few days off work? Perhaps your health? If you’re like many people approaching retirement, you have a number of blessings for which to be thankful.
 
Many of our blessings and fortunate circumstances are determined by choices we made earlier in life. Your good health may be a result of your healthy lifestyle. Your financial stability is likely a result of your career choices and your savings habits.
 
What decisions can you make today that you will be thankful for in the future? Below are three actions your retired self may appreciate. If you’re approaching retirement and haven’t taken these steps, now may be the time to do so.

Reduce your risk exposure. 

As you get closer to retirement, you may feel less comfortable with market risk. That’s natural. Many people take an aggressive approach when they are younger because they have more time to recover from losses. After all, a slight downturn in the market may feel insignificant when you have 20 years until retirement.
 
However, as you get closer to retirement, you may not have as much time to recover from a potential loss. If you haven’t already done so, now may be the time to review your strategy and make sure your risk exposure is appropriate for your tolerance. You may want to adjust your allocation or consider tools that limit downside potential.
 
By making adjustments today, you could potentially reduce losses if the market turns before you retire. Your future retired self will likely be thankful that you were proactive about limiting your exposure to market risk.

Increasing your savings. 

Your last few years before retirement could be your best opportunity to make one final savings push. Now could be the time to trim your budget and find ways to increase your savings.
 
Fortunately, if you’re age 50 or older, you can contribute more money to your qualified retirement accounts. The IRS allows you to make “catch-up contributions” in excess of the normal limits.

In 2019, you can contribute up to $19,000 into a 401(k), plus an additional $6,000 as a catch-up contribution if you are age 50 or older. You can contribute up to $6,000 in an IRA, plus $1,000 as a catch-up contribution.1 Look for ways to increase your savings. Even if you can’t hit the maximum limit, any increase will help you accumulate more assets for retirement.

Planning and protecting your income. 

Saving is a big part of the retirement planning puzzle, but it’s not the only piece. Once you retire, you have to generate income from your assets. It can be more tricky than it sounds. If you distribute too much income in the early years, you may not have enough assets left in the later years of retirement.
 
Now could be the right time to develop your income strategy. What’s the right amount of income to support your lifestyle and still protect your assets? What tools and strategies can you use to make sure your income lasts for life, no matter how long you live? Your retired self will be thankful if you address these questions today rather than after it’s too late.
 
Ready to put the finishing touches on your retirement strategy? Let’s talk about it. Contact us today at Boston Independence Group.. We can help you analyze your needs and implement a plan. Let’s connect soon and start the conversation.
 
 
1https://www.irs.gov/newsroom/401k-contribution-limit-increases-to-19000-for-2019-ira-limit-increases-to-6000
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
​

The holidays are already here. It’s time for holiday music, decorations, and of course, gift shopping. If you’re like most Americans, this time of year isn’t just the most festive season. It’s also the most expensive season.
 
According to a study from MagnifyMoney, the average American added $1,230 in debt over the 2018 holiday season. That figure has increased significantly every year that MagnifyMoney has conducted the survey. In the initial 2015 survey, the average level of new debt was $986.1
 
Unfortunately, for many holiday shoppers, the additional debt can have long term consequences. Only 42% of shoppers said they planned to pay off the debt within three months. Twenty-seven percent said it would take five months or more, and 22% said they planned to only make minimum payments.1
 
Long-term credit card debt can add up. You end up paying not only for your purchases but also for accumulated interest. If you’re approaching retirement, that debt can be corrosive. Every dollar you spend to service debt is a dollar you can’t save for retirement.
 
Fortunately, you can reduce your level of holiday debt by planning ahead. Below are a few tips to get you through this holiday season.

Set a budget. 

Budgets are always a powerful financial tool, but they’re especially helpful during periods of high spending, like vacations or holiday seasons. Take some time to write down exactly how much you want to spend on each person on your list. What is the maximum for each individual? What is the total maximum you want to spend?
 
Often, simply writing a budget is enough to control your spending. That number will be fixed in your mind as you do your holiday shopping. Be creative and look for ideas to find meaningful gifts without busting your budget.

Track your spending. 

A budget is helpful, but it doesn’t mean anything if you don’t stick with it. Find a way to track your spending throughout the holiday season. For instance, you could keep your receipts and add up the totals. You could store your spending in a spreadsheet. Use whatever works for you, but track your spending so you can make sure you are staying within budget.

Be smart about your credit cards.If you must use a credit card, be smart about your strategy. For example, determine which of your cards offer the best rewards. Could you earn cash back? Or possibly accumulate travel points or other rewards that may offset some future cost? Also, consider consolidating your debt on a low-interest card so you can pay it off faster.

Don’t tap into retirement savings. 

It may be tempting to take a small withdrawal from your IRA or 401(k) to pay for your holiday spending. However, resist the urge to do so. When you take a distribution from a qualified retirement account, you not only pay taxes, you also might pay an early distribution penalty if you’re under age 59 ½.
 
Additionally, you reduce your retirement nest egg. You’ll lose the amount you withdrew and also any future potential growth on those assets. Find other ways to pay for your holiday spending without tapping into your retirement.
 
Ready to tackle your debt and prepare for retirement? Let’s talk about it. Contact us today at Boston Independence Group. We can help you develop and implement a strategy. Let’s connect soon and start the conversation.
 
 
1https://www.magnifymoney.com/blog/news/2018-holiday-debt-survey/
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
​