Retirement planning shouldn’t start when you turn 65. In fact, the earlier you start planning, the better. Unfortunately, most people hold off on thinking about it as long as possible. If you’re in your 50’s, now is a good time to catch up on the years you might have missed. When you reach the age of 50, you reach a decade of transition. This is a time when you are most likely at your peak earning potential, you’ve found your career path and your children are beginning to move out. All these things combined indicate that you probably have more disposable income than ever before. But, at the time you enter retirement, you will no longer be earning that steady paycheck from your job. So, if you’ve held off on your retirement planning, now may be a good time to start playing retirement catch up.

Around the time you turn age 50, you may start thinking more seriously about retirement, which is why it’s a great time to start using your catch-ups. Luckily, the federal government knows that most people are a little late to save for retirement, so there are a few laws that allow you to start putting away more. For example, at age 50 you are able to give an additional $1,000 worth of annual contributions to your IRA. And, at age 55 you can contribute an additional $1,000 to your health savings accounts. Another example of ways you can use your catch-ups is at age 50, where you can give an additional $6,000 of annual contributions to your 401(k)s and similar employer-sponsored plans. These catch-ups can help give you some last chance savings for your life in retirement.

Next, it is important to know when you can get into your retirement savings, and begin withdrawals from your accounts. If you have used regular taxable accounts to invest your savings, then they will be accessible at any time. But with some accounts, like traditional IRAs and 401(k)s, your money might be a little more locked up. For example, if you try to withdraw from your traditional IRA before you are age 59 ½, you may be subject to a 10% penalty. However, there are certain exceptions to the withdrawal rules, which is why it’s important to talk things over with your trusted financial advisor before making any major decisions, like a withdrawal from one of your retirement savings accounts.

Ultimately, it is helpful to have the guidance of a financial professional who can help take some of the guesswork out of retirement planning. At SHP Financial, our goal is work together to help figure out the best path forward for you and your unique situation. To schedule your complimentary, no obligation review, Click HERE! By taking this step forward, you can help set yourself up on the right path to play retirement catch up so you are ready and prepared for when the time to retire rolls around.

The content presented is for informational purposes only and is not intended as offering financial, tax, or legal advice, and should not be considered a solicitation for the purchase or sale of any security. Some of the informational content presented was prepared and provided by tMedia, LLC, while other content presented may be from outside sources believed to be providing accurate information. Regardless of source no representations or warranties as to the completeness or accuracy of any information presented is implied. tMedia, LLC is not affiliated with the Advisor, Advisor’s RIA, Broker-Dealer, or any state or SEC registered investment advisory firm. Before making any decisions you should consult a tax or legal professional to discuss your personal situation.Investment Advisory Services are offered through SHP Wealth Management LLC., an SEC registered investment advisor. Insurance sales are offered through SHP Financial, LLC. These are separate entities, Matthew Chapman Peck, CFP®, CIMA®, Derek Louis Gregoire, and Keith Winslow Ellis Jr. are independent licensed insurance agents, and Owners/Partners of an insurance agency, SHP Financial, LLC.. In addition, other supervised persons of SHP Wealth Management, LLC. are independent licensed insurance agents of SHP Financial, LLC. No statements made shall constitute tax, legal or accounting advice. You should consult your own legal or tax professional before investing. Both SHP Wealth Management, LLC. and SHP Financial, LLC. will offer clients advice and/or products from each entity. No client is under any obligation to purchase any insurance product.
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