We often remind our readers that it’s never a bad idea to save all you can for retirement. After all, it’s not very likely that anyone has ever said, “Gosh, I wish I hadn’t saved so much and retired on such a comfortable income!”
That’s why we consistently urge you to max out your annual retirement account contributions. This year, you can save $19,000 in your 401(k), plus an additional $6,500 “catch up” contribution if you’re age 50 or older. Not only does this help you to better prepare for retirement; since your contributions are made on a pre-tax basis, you are lowering your tax liability as well.
But what if you’re already maxing out contributions? Does that mean you’re “done” with retirement planning, and you can coast from now until the end of your career? Or should you try to save additional funds for the future?
The answers to those questions can vary depending upon individual situations. But since saving more is usually a good idea, here are a few options to consider. They aren’t new or unusual, but sometimes people forget about them:
- Open and fund an Individual Retirement Account (IRA)
- Open a Spousal IRA and begin making contributions
- Open a health savings account (if you participate in a high-deductible healthcare plan)
- Consider other investments after careful research (municipal bonds, annuities, real estate, or cash-value life insurance policies)
Each of these ideas may have some pros and cons, so we don’t recommend that you dive into any of them without consulting an experienced financial advisor first. The idea is that yes, you do have other opportunities available to you! Call us to schedule an appointment, and we can help you decide which of these ideas (or perhaps something else) will address your unique concerns.