Have you ever spent hours trying to fix something that, with the right tools, a professional could fix in five minutes?
We’ve all been there. But it’s often difficult to fully appreciate the time, effort, and in some circumstances the cost it could save you to enlist help earlier in the process.
In today’s episode, we’ll explore six steps that are available to augment your lifetime savings. Press play to discover if you are missing out on critical savings tools.
Are you maximizing your Roth contributions?
High-income earners often miss that they can save in a Roth IRA. This is done through the backdoor Roth. The backdoor Roth is a way that high earners can utilize a Roth account to save tax-free.
The current Roth contribution amount is $6500 per year, or $540 per month–as much as a car payment or half a month’s daycare tuition.
It can be tricky to understand if you are even eligible until you prepare your taxes which is why a professional can help you navigate these murky waters.
Understand and maximize the limits in your retirement savings accounts
Keeping up with the different maximum retirement savings is one way that you can increase your savings over time. In most years, there are slight changes to the amounts that you can save in different savings vehicles. You may not even be aware of the changes made. Pay attention to increased limits to all retirement savings accounts so that you ensure that you are maximizing your savings each year.
Use your losses to offset your gains
Nobody likes living in the uncertainty of a bear market, but there could be a way to harvest your losses to offset your gains. Tax loss harvesting is the silver lining in a bear market. This is a great strategy to implement if you are in a higher tax bracket now and expect to be in a lower one later.
Listen in to hear who shouldn’t use tax loss harvesting. After listening to this episode, check out this YouTube video on tax loss harvesting so that you have a better understanding of how to use this effective tax tool.
Have the right people in your corner
You may already have a financial plan, but having a professional in your corner can ensure that you are staying on the right track. A financial planner can help you make sure that you are implementing the plan that fits your personal goals and that you are taking advantage of all the resources available to you.
Outline of This Episode
- [6:00] Maxing Roth contributions
- [9:25] Pay attention to increased limits to all retirement savings accounts
- [12:32] Confusion between different types of Roth savings
- [16:29] Use your losses to offset your gains
- [21:02] Don’t get scared out of the market when the market falters
- [23:33] Have the right people in your corner
- [24:48] Learn how to build a decision-making framework
Resources & People Mentioned
Connect With Us
- Connect on Twitter @csmithraleigh @TeamFSINC
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