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Year-End is a Good Time to Get Your Retirement Planning House in Order, Says Diversified Investment Advisors; Ongoing Planning Encourages Healthy Retirement Nest Eggs, Maximizes Tax LawsPosted by Randy on: 2005-11-21 09:57:52 in category:
Retirement Planning News [ Print | Permalink / 0 Comment(s) ] Year-End is a Good Time to Get Your Retirement Planning House in Order, Says Diversified Investment Advisors; Ongoing Planning Encourages Healthy Retirement Nest Eggs, Maximizes Tax Laws PURCHASE, N.Y.--(BUSINESS WIRE)--Nov. 16, 2005--As people begin to refocus their attention on their personal finances and tax planning with December 31, 2005 around the corner, there are several steps they can take now to maximize the tax laws that were designed to encourage adequate savings for a comfortable retirement later on. "For millions of Americans, cozy 401(k) nest eggs that were so carefully accumulated must also be vigilantly tended if they are to sustain growth and remain viable. In our ownership society, where individuals are increasingly relied upon to shoulder responsibility for their own retirement and late-life welfare, it is important that investors take ongoing steps to shepherd their savings toward growth and prosperity," said Laurie Fleischman, a vice president of Diversified Investment Advisors, a national investment advisory firm specializing in retirement plans. Fleischman recommends future retirees of any age consider the following steps before year-end: -- Look at the contributions you made throughout the year to make sure you have contributed as much as you can and at least as much as is required to maximize your employer's matching contributions. -- Don't overlook the opportunity to make "catch-up contributions." If you are 50 years of age or older in 2005 and your employer's plan allows, you can contribute more toward your 401(k) plan. For example, if you qualify, you can contribute up to $18,000 in 2005 to your 401(k) plan versus just $14,000 for those under age 50. -- If you receive an increase in your salary toward the end of the year, it is important to consider increasing your contribution rate accordingly. A salary increase can be a convenient, and perhaps painless, time to increase your contribution rate by a percentage point or two, for example, which can make a powerful difference in accumulating your retirement nest egg. In fact, if it is feasible financially and you can meet all your expenses with your former salary, consider allocating the entire dollar value of the increase toward your retirement plan up to the allowable maximum. Even if you don't adjust your contribution rate, your contribution amount will go up a little as your salary goes up. -- Consider making an IRA contribution up until April 15, 2006, for the 2005 tax year. The maximum total IRA contribution allowed for 2005 is $4,000. Or consider opening a Roth IRA, which allows you to allocate after-tax money toward an IRA, with the potential for tax-free earnings. You can also make catch-up contributions to your IRA or Roth IRA if you are 50 and over up to $500 in 2005. About Diversified Diversified Investment Advisors is a national investment advisory firm specializing in retirement plans. The company's expertise covers the entire spectrum of defined benefit and defined contribution plans, including: 401(k); 403(b); 457; non-qualified deferred compensation; profit sharing; money purchase; cash balance and Taft-Hartley plans; and rollover and Roth IRA. Diversified services over $66 billion in retirement plan assets, helping more than 1.4 million participants save and invest wisely for retirement. Headquartered in Purchase, NY, the company's regional offices are located in Arkansas, California, Illinois, Iowa, Louisiana, Maryland, Massachusetts, New York, North Carolina, Ohio, Oregon, Pennsylvania, Texas and Wisconsin. Visit our Web site at www.divinvest.com. Open community website http://www.business-business.biz http://www.investment-investment.us http://www.retirement-retirement.com Recommended sites To design your custom retirement plan. http://www.retirement-plan.us For planning an IRA rollover this is the site to review. http://www.ira-rollover.us For professional asset allocation and the wonders it can do. http://www.asset-allocation.us Managers selected to fit your needs. http://www.money-managers.us |
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