Is your retirement planning on track? Will you have enough to send kids to college or pay for weddings? How can you leave a strong legacy? These are questions we hear often from our clients. The earlier you start saving for retirement and other milestones in life, the easier it can be to reach your goals. Here’s how to build a strong foundation for financial wellness and retirement planning.
Prioritize Your IRA and Retirement Contributions
The earlier you contribute to your IRA each year, the better. Although you technically have until April 15 of the following year to make your annual contribution, contributing early gives your investments more time to grow. If a lump sum isn’t possible, set up monthly contributions to stay on track and meet your yearly goal.
Do you have a 401(k) or other retirement plans through your job? Make sure to take advantage of that, as well. Generally we recommend investing up to the company match and then putting additional funds in a Roth or Traditional IRA.
If you've changed jobs, you may have retirement funds lingering in old 401(k) plans. Consolidating these into an IRA can simplify your finances and potentially open up more investment options. Make sure to work directly with your IRA custodian or financial advisor to avoid unnecessary tax complications.
Review and Update Beneficiary Designations
Life changes. Marriages, births, divorces, and deaths can affect your financial legacy. That’s why it’s essential to review your IRA and retirement account beneficiaries regularly. Especially with changes from the SECURE Act, ensuring your designations are up-to-date helps ensure your assets are passed on as intended.
Sometimes it makes sense to protect your assets in a trust. A trust is a legal vehicle to transfer assets by allowing a third party (a trustee) to hold and direct assets owned by one party (grantor) in a trust fund on behalf of another party (a beneficiary). A trust avoids probate court and allows you to have control over your assets—not just today, but potentially for generations to come. This provides far greater flexibility than a will. If you think you might benefit from holding some or all of your assets in a trust, give us a call. We can help determine if that’s the right vehicle for you.
Make a Monthly Budget and Stick to It
A monthly budget isn’t just about cutting back. It’s about prioritizing what matters most and making sure your money goes where you want it to go. Include your retirement and other savings as a fixed “expense” and revisit your budget regularly to align with your goals. Small changes can free up funds to support your long-term financial future.
Retirement planning isn’t a one-time task; it evolves with your life. We can help you assess how much you’ll need in 10, 20, or 30 years. Planning ahead can help you retire comfortably — maybe even earlier than you expected.
Invest Wisely and Minimize Taxes Where Possible
Saving money is only the first step. Investing wisely is what really helps it grow. Think long term and account for factors like inflation and market performance. The goal is to not just preserve your wealth, but to increase it. Our mission is to help our clients find the right mix of investments to grow their wealth and achieve their goals with as little market risk as possible.
Tax planning is another way to help protect wealth and maximize returns, and the right planning can help reduce unnecessary tax burdens. This includes optimizing your retirement contributions, charitable giving, and how your assets are titled. We have CPAs on staff at First Wealth & Trust who regularly help our clients identify smart ways to safeguard and transfer wealth.
Invest for the Long Term
Markets go up and down and are naturally cyclical. When markets are up, life is great. But when corrections occur, don’t panic. If you’re planning and investing for the long haul, and you have a professional financial advisor to guide you, chances are your investment strategy can weather market volatility and even take advantage of downturns in the market.
We Can Help
Whether you're just getting started or refining a long-standing plan, it helps to have guidance. Give us a call if you’d like some assistance with evaluating your financial and retirement plan. Let’s work together to build a strong financial future.
Trust and investment services are not FDIC insured, not deposits of the bank, not guaranteed by the bank, not insured by any government agency, and may lose value.