Finance & Enjoyment Blog

It’s Time to Update Your Retirement Accounts

It’s Time to Update Your Retirement Accounts


Since January is a month of resolutions and goal setting, make sure you take some time to evaluate your financial reality to make sure you are on track to hit your future financial goals. Personal wealth management isn’t something you should leave to chance—a check-in and adjustments to your retirement accounts should be done at minimum once a year.

Evaluate Your Investor Profile

An annual check-in of your retirement accounts provides the perfect opportunity to ensure that your investment profile accurately reflects your tolerance for risk. For most investors, risk tolerance changes over time and you may not have your investments properly allocated. If you resolve to assess your accounts at least annually, you will have ample time to adjust your accounts over the years as you get closer to retirement. Additionally, take care to not be overly cautious. Investments must sustain our preferred post-work lifestyles for 20 to 30 years as life expectancies increase, so investments need to grow faster than the rate of inflation.

Increase Your Contributions to Catch-Up

For 2015, the IRS raised the 401(k) contribution limit by $500 (maximum annual contribution of $18,000) and if you are 50 or older in 2015 you can contribute an additional $6,000 each year as a catch-up amount for a maximum contribution of $24,000 in 2015. Regardless of your age, the beginning of the year is the perfect time to increase your retirement contributions. The sooner you contribute more, the sooner your retirement funds will begin to work harder for you and compound.

Any Life-Altering Events?

Let the dawn of a new year be the trigger for you to ensure that your beneficiary information and other pertinent contact details are up to date with your current reality. If you got married or divorced, added to your family or had a substantial change to your income, you’ll want to be sure that your official documents accurately reflect this new reality.

How to Use This Information

Our Certified Public Accountants know how easily time can get away from us all, and that’s just one of the reasons they suggest completing an assessment of your retirement accounts annually, and the start of a new year can serve as the perfect trigger to remind you to do so. We would be happy to help guide your personal wealth management decisions, and invite you to give us a call at 303-815-1100 or contact us online.

What has transpired in your life during the last 12 months that could impact your retirement accounts?


Posted in Retirement and Exit Strategies »



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