Make the Maximum Contribution to Your Retirement Plan & Retire Secure Sedona AZ
Now, let's assume you have been contributing only the portion that your employer is willing to match and yet you barely have enough money to get by week to week. Does it still make sense to make non-matched contributions or Roth IRA contributions assuming you do not want to reduce your spending? Maybe. (This article does not address Roth IRA contributions vs. non-matched 401(k) contributions and hereafter only refers to non-matched 401(k) contributions).
Wells Fargo - Sedona
928-282-7145
2201 W Hwy 89A
Sedona, AZ
Wells Fargo - Sedona
928-282-7145
2201 W Hwy 89A
Sedona, AZ 86336
Office Hours
Mon-Fri 09:00 AM-06:00 PM
Sat 09:00 AM-04:00 PM
Sun Closed
Chase Bank
(928) 282-4127
1300 W Hwy 89a
Sedona, AZ
Chase Bank
(928) 282-4127
1300 W Hwy 89a
Sedona, AZ 86336
Office Hours
Mon:9:00-5:00
Tues:9:00-5:00
Wed:9:00-5:00
Thurs:9:00-5:00
Fri:9:00-6:00
Sat:9:00-1:00
Sun:closed
Wells Fargo - Cottonwood
928-634-4221
1201 E State Route 89A
Cottonwood, AZ
Wells Fargo - Cottonwood
928-634-4221
1201 E State Route 89A
Cottonwood, AZ 86326
Office Hours
Mon-Fri 09:00 AM-06:00 PM
Sat 09:00 AM-04:00 PM
Sun Closed
Bank of America - Cottonwood
928.634.4291
611 S Main St
Cottonwood, AZ
Bank of America - Cottonwood
928.634.4291
611 S Main St
Cottonwood, AZ 86326
Services
Banking Center Services: Commercial Deposits, Night Deposits, Drive Up
Outdoor ATM Services: Open 24 Hours, Talking ATM, Braille, Accepts Deposits, Drive Up, Deposit Image
Languages
English, Spanish, Chinese, Korean, French, Russian, Portuguese
Office Hours
Monday 9-5
Tuesday 9-5
Wednesday 9-5
Thursday 9-5
Friday 9-6
Saturday 9-1
Sunday Closed
Drive Up Hours
Monday 9-5
Tuesday 9-5
Wednesday 9-5
Thursday 9-5
Friday 9-6
Saturday 9-1
Sunday Closed
Chase Bank
(928) 567-4111
402 Finnie Flat Rd
Camp Verde, AZ
Chase Bank
(928) 567-4111
402 Finnie Flat Rd
Camp Verde, AZ 86322
Office Hours
Mon:8:30-5:30
Tues:8:30-5:30
Wed:8:30-5:30
Thurs:8:30-5:30
Fri:8:30-6:00
Sat:9:00-1:00
Sun:closed
Bank of America - West Sedona
928.282.4444
1771 W Hwy 89a
Sedona, AZ
Bank of America - West Sedona
928.282.4444
1771 W Hwy 89a
Sedona, AZ 86336
Services
Banking Center Services: Commercial Deposits, Night Deposits, Drive Up
Outdoor ATM Services: Open 24 Hours, Talking ATM, Braille, Accepts Deposits, Drive Up, Deposit Image
Languages
English, Spanish, Chinese, Korean, French, Russian, Portuguese
Office Hours
Monday 9-5
Tuesday 9-5
Wednesday 9-5
Thursday 9-5
Friday 9-6
Saturday 9-1
Sunday Closed
Drive Up Hours
Monday 9-5
Tuesday 9-5
Wednesday 9-5
Thursday 9-5
Friday 9-6
Saturday 9-1
Sunday Closed
Chase Bank
(928) 284-1030
6666 Hwy 179
Sedona, AZ
Chase Bank
(928) 284-1030
6666 Hwy 179
Sedona, AZ 86351
Office Hours
Mon:9:00-6:00
Tues:9:00-6:00
Wed:9:00-6:00
Thurs:9:00-6:00
Fri:9:00-6:00
Sat:9:00-1:00
Sun:closed
Chase Bank
(928) 634-5567
1540 Hwy 89a
Cottonwood, AZ
Chase Bank
(928) 634-5567
1540 Hwy 89a
Cottonwood, AZ 86326
Office Hours
Mon:8:30-6:00
Tues:8:30-6:00
Wed:8:30-6:00
Thurs:8:30-6:00
Fri:8:30-6:00
Sat:9:00-1:00
Sun:closed
Wells Fargo - Bashas' Camp Verde
928-567-1767
650 W Finnie Flats Rd
Camp Verde, AZ
Wells Fargo - Bashas' Camp Verde
928-567-1767
650 W Finnie Flats Rd
Camp Verde, AZ 86322
Office Hours
Mon-Fri 08:00 AM-06:00 PM
Sat 08:00 AM-04:00 PM
Sun Closed
Robert Keats
Keats, Connelly and Associates, LLC
(602) 955-5007 Ext: 210
3336 North 32nd Street, Suite 100
Phoenix, AZ
Robert Keats
Keats, Connelly and Associates, LLC
(602) 955-5007 Ext: 210
3336 North 32nd Street, Suite 100
Phoenix, AZ 85018
Expertises
Ongoing Investment Management, Retirement Planning & Distribution Rules, Financial Issues Between Generations, Estate & Generational Planning Issues, Helping Clients Identify & Achieve Goals, Charitable Giving - Trusts & Foundations
Certifications
NAPFA Registered Financial Advisor, BS, CFP®, MSFS
Data Provided by:
Data Provided by:
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Frugal Living
Saving For Retirement: Make the Maximum Contribution to Your Retirement Plan & Retire Secure
By James Lange
|
Many people perhaps you feel they cannot afford to save for retirement. The truth is you may very well be able to afford to save, but you don t realize it. That's right. I am going to present a rationale to persuade you to contribute more than you think you can afford.
First, I am operating on assumption that you are following the cardinal rule of saving for retirement: If your employer offers a matching contribution to your retirement plan you are contributing whatever your employer is willing to match even if it is only a percentage of your contribution and not a dollar for dollar match.
Now, let's assume you have been contributing only the portion that your employer is willing to match and yet you barely have enough money to get by week to week. Does it still make sense to make non-matched contributions or Roth IRA contributions assuming you do not want to reduce your spending? Maybe. (This article does not address Roth IRA contributions vs. non-matched 401(k) contributions and hereafter only refers to non-matched 401(k) contributions).
If you have substantial savings and maximizing your retirement plan contributions causes your net payroll check to be insufficient to meet your expenses, you should maximize retirement plan contributions.
The shortfall for your living expenses from making increased pre-tax retirement plan contributions should be withdrawn from your savings (money that has already been taxed). Over time this process, i.e., increasing contributions to your retirement plan and funding the shortfall by making after-tax withdrawals from an after-tax account, transfers money from the after-tax environment to the pre-tax environment. Ultimately it results in more money for you and your heirs.
Another way to squeeze blood from a stone is to consider an interest only mortgage. The reduced mortgage payment (in contrast to what you would be paying on a 30-year fixed rate mortgage) is deductible as a home interest expense. The additional cash flow from the reduced payment could be used to pay credit card debt or fund one or more tax favored investments. You could open a Roth IRA, make additional retirement contributions, and/or purchase a tax-favored life insurance plan. In the long run, you could be better off, often by hundreds of thousands of dollars. Of course there are risks with this strategy.
Another opportunity to shift savings from the after-tax environment to tax advantaged retirement savings might arise if you are the beneficiary of an inheritance.
Take this Changing Your IRA and Retirement Plan Strategy after a Windfall or an Inheritance mini case study for example:
Joe always had trouble making ends meet. He did, however, know enough to always contribute to his retirement plan th...
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