What Financial Questions Should I Ask Myself This New Year?
Happy New Year! Welcome to 2024. As we embark on a brand-new year, it’s a great time to take stock on what’s happening in your life and what things are changing. Financially, it’s a good time to reassess where you are with your financial goals.
Am I Saving Enough?
I recommend a general guideline for saving: Aim to save around 10 to 15% of your income. Each year, the contribution limits for retirement accounts increase slightly.
For this year, the maximum contribution to an IRA or Roth IRA is $7,000. If you are 50 years old or older, that rises to $8,000. In a 401(k) retirement account sponsored by your employer, the contribution limit is set at $23,000. However, if you’re 50 years old or above, the limit increases to $30,500.
So, again, how much are you contributing relative to your income?
Can I Retire?
As retirement approaches, it’s crucial to consider whether you’ve created a plan to confidently answer the question, “Can I retire?” You’ll also want to take into account your desired lifestyle, the potential risk of running out of money in the future, and what rate of return you need on your investments.
To address these concerns, it is critical to develop a retirement income plan that considers your desired retirement age, lifestyle aspirations, existing income sources, savings and investments, and ultimately provides the answer if you can retire or not.
How Much Risk Can I Take?
It’s a new year, a nice time to do a reassessment of things. When you’re younger, you certainly could take a lot of risk when it comes to retirement accounts because you have a lot of time to go until you retire.
If you’ve gotten closer to retirement, now is a good chance to reassess how much risk you are taking. You don’t want to go backwards if you are in retirement or close to retirement.
Meeting with your financial advisor is key to making sure you are on the right track to your retirement.