The deadline for filing your taxes is April 15th…
That means you have 24 days left to get all of your retirement funds in order before the 2019 season officially rolls over.
Whether you’re dealing with IRAs or HSAs, here’s everything you need to know about making the most out of your savings.
Year after year, people find themselves scrambling to maximize their retirement contributions within this same time frame.
If you’re someone who’s postponed adding cash to these accounts until now, then you’re looking at THOUSANDS of dollars’ worth of catch-up.
For most people, that’s not necessarily considered chump change and if you’re unable to cough it all up at once, chances are it’ll come back to bite you once that long-awaited retirement date finally arrives.
That’s exactly what I’m here to talk to you about today…
Instead of falling into this vicious cycle time and time again, why not play it safe by meeting these contribution limits bit-by-bit over the course of 12 months?
It’s a much more realistic approach to retirement planning that easily beats coming up with the funds last-minute.
In case you need a refresher, the absolute most you can add to your IRA or Roth IRA each year is $5,500 if you’re under 50 years old and an extra grand if you’re over.
HSAs on the other hand vary per individual, but usually fall somewhere in the ballpark of $3,500 to $7,000 annually.
If your goal is to max out your IRA for 2019, then you’ll need to go ahead and make a habit of setting aside at least $500 a month or $583.33 if you’re age 50 and up.
Not only does this make saving a lot easier in the long-run, but repeatedly investing the same amount can also mitigate short-term volatility as the taxpayer (AKA you) is buying in at a variety of the markets return.
In other words, taking this route allows broad market exposure.
On top of funneling savings into these accounts each month, you should also develop a “set it and forget it” mindset.
Don’t waste your time checking up on the health of your IRA or HSA.
This will do nothing more than bring your emotions into the picture and cause you to react to the ups and downs of Wall Street.
They say the best investors are those who remain detached…
Going off of that, maybe only look for a status update on your account every year or so.
Remember, staying on top of your savings can mean the difference between retiring as planned or having to work longer and NOBODY wants that!
Don’t put your monthly deposits on the back burner and wait around until the maximum annual contribution grows into something that’s too much for you to handle all at once.
For the time being, get together what you can before the 2018 tax year wraps up, but go into the new year prepared by regularly contributing to your accounts.
Trust me, it’ll pay off in the end.