Month: April 2019



Maxing out your 401k

People believe it is hard to save for retirement but the easiest and best thing you can do is to automate your 401(k) savings.  The maximum limit in 2019 is $19,000 and people 50 and older can add an additional $6,000 to these savings.  Only 13% of participants maxed out their 401(k) in 2017.  The bad thing about this is that most of these investors had higher incomes, were older and had longer tenure at their employers.   The article then goes into some ways that may make it easier for a person to increase their contribution and it also talks about pitfalls to avoid such as going out to eat too much. 04.23.19

How Long Should you Keep Tax Records?

How long should you keep tax records?  This question seems to come up often with our clients so we thought it would be worth posting.  The IRS has a period of 3 years after the due date of your return to initiate an audit, so you should keep your records at least that long.  The article goes into which documents you should keep and for what period of time.  For instance, the article recommends that you keep information about your investments and bad debts for seven years.  The good thing about this is you don’t actually need to keep these statements since you can get them online at any time if you keep the same brokerage firm.  It might be a little tougher for you as time passes and if you change brokerage firms.  If you are a client of ours and feel that you can discard some of your old returns, we would be happy to shred them for you.  Simply bring them into our office and we will shred them the next time the truck service comes around. 04.17.19

7 Deadly Sins of Retirement Planning

Baby boomers were born just after World War II between 1946 and 1964 and are now retiring at the fastest pace in history.   This article talks about a study done by the Insured Retirement Institute and the conclusion is that most baby boomers are not prepared for retirement even as they are entering it.  It states that barely 1 person in 10 has saved enough for retirement.   The study consisted of 804 people and says that only 11% have at least $500,000 saved for their retirement and nearly 50% don’t have any retirement savings at all.   The article takes a deeper look in to the 7 mistakes that people should not make when planning for retirement.  Most seem basic enough but they are definitely worth a review. 04.10.19

Rewards Programs

One of the most popular credit card companies – Capital One – just changed the rules of the game without telling anybody.  At the end of March the quietly updated the number of rewards miles card holders need before they can trade them in for gift cards for popular retailers like Amazon, Apple and Walmart.  Capital One did not announce the change widely but did make a post on its rewards portal.  Our advice is to pay attention to the rewards programs that you are in and always be on the lookout for alternative rewards programs. 04.10.19