Good News - December 2018

Even if you are juggling other financial goals, here are some steps from Merrill Lynch Wealth Management to help you get back on track. YOU ARE BUSY WITH YOUR CAREER, maybe buying a home, having kids, saving for college — even starting a busi- ness. It is the stuff of life — and retirement often takes a backseat to all of those immediate financial priorities. Suddenly, you are hit- ting your 40s or 50s, and you re- alize you have fallen behind on planning for your future. So how can you catch up? Debra Greenberg, director, Per- sonal Retirement Strategy and Solutions at Bank of America Merrill Lynch, has the following five suggestions—each of which can help you get closer to your re- tirement goals. “Do not get dis- couraged,” Greenberg says. “Even seemingly small amounts can add up over the years, and taking action now increases the likelihood you will be better pre- pared to meet any unexpected challenges that come your way.” 1. Max out your tax-advan- taged accounts. A 401(k): Be sure you are getting your full company match, if one is offered, so that you are not leaving money on the table. Do not forget: An annual “catch- up” contribution of $6,000 is al- lowed after age 50. Roth IRA or Traditional IRA: No 401(k)? Or want to save more? Consider an IRA. If you are married and not working, you could contribute $5,500 to a spousal IRA. Catch-up contribu- tions of $1,000 are allowed after age 50. Health Savings Account: If you have a high-deductible health plan, an HSA can be used for qualified medical expenses now, and after age 65 you may be able to pay Medicare premiums with tax-free distributions. 2. Pay off costly debt. Paying off high-interest credit card debt should be a priority. Doing so will give you more money to direct toward your re- tirement. Says Greenberg, “A fi- nancial advisor can help you figure out how to manage com- peting financial needs while still saving for retirement.” 3. Work longer. If you work past age 65—or consult as you phase into retire- ment — “that can potentially give your assets more time to grow before you start drawing upon them,” Greenberg notes. Working longer can also help you to defer your Social Security payments. Each year you delay taking Social Security after age 62, your monthly benefits grow by about 8%, until age 70. 4. Downsize. By downsizing or moving some- where less expensive, you could reap the benefits of: • The equity youmight have accu- mulated in your home • Reduced living costs (like trans- portation, housing, maintenance bills) • A smaller mortgage—or if you can buy a newplace outright, elim- inating a mortgage completely •Atax advantage if you relocate to a townwith lower property taxes— or to one of the seven states with no personal income tax 5. Invest for growth. Many people tend to shift to more conservative investments as they near retirement; others simply have a conservative in- vesting bias. But today’s longer life expectancies mean that your money has to work harder and last longer. “Talk to an advisor about adjusting your asset alloca- tion to pursue more growth, with- out losing sight of your risk tolerance,” Greenberg says. For more information, con- tact Merrill Lynch, Franz Koch in the Boca Raton office at 561-393- 4583 or [email protected] . Merrill Lynch makes avail- able products and services of- fered by Merrill Lynch, Pierce, Fenner & Smith Incorporated (MLPF&S) and other subsidiaries of Bank of America Corporation. Investment products:Are Not FDIC Insured, Are Not Bank Guaranteed, May Lose Value MLPF&S is a registered bro- ker-dealer, Member SIPC and a wholly owned subsidiary of Bank of America Corporation. Neither Merrill Lynch nor any of its affiliates or financial advisors provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions. © 2018 Bank of America Corporation. All rights reserved. ARVQ8GWC Money Sense-Save More for Retirement With These 5 Tips Franz Koch Merrill Lynch Palm Beach County