Steve Sexton shares his best tips for when retirement's around the corner...
If you’re in your 50s, retirement is nearly around the corner for you. While everyone’s financial situation varies from person to person, here are a few things I would recommend prioritizing you in your 50s:
Contribute the maximum amount to your 401(k) very year until you retire. Doing so is a simple way to responsibly invest your money in retirement, but you’ll also defer paying taxes on this income until you withdraw these funds –this frees up additional funds now for you to allocate to other investment vehicles or paying down current debt.
Reevaluate your 401(k) allocations. As you near retirement, it’s typically recommended to take a more conservative approach. Consider looking into whether your 401(k) plan offers target-date funds, which automatically adjust asset allocations to your goal retirement year.
Fund your IRA to the max every year until you retire. The maximum contribution you can make to your IRA in 2024 if you’re 50 or older is $8,000.
Start diving into what your Social Security benefits could look like. There are plenty of reliable online estimators that can help you determine how much Social Security you can expect to receive on a monthly basis.
Sincerely,
Steve Sexton
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