If you’re like many retirees, your 401(k) may be your single biggest retirement asset. The 401(k) plan can make for an excellent retirement savings vehicle. It offers tax-deferred growth while funds are in the account, allowing your earnings to compound quickly. Also, if your employer has a generous match, you may get the benefit of additional contributions into the plan.
As you near retirement, though, you’ll have to start thinking about your 401(k) not as an accumulation vehicle, but rather as a distribution tool. You will likely have income from Social Security and possibly even a pension in retirement, but you may also need income from your savings to fill in the gaps.
Do you have resolutions for the New Year? It’s not too late to make one. While many people make resolutions to get in shape or pursue a new hobby, you may want to make 2017 the year you take control of your retirement planning. Whether you’re quickly approaching retirement or still many years away, it’s always a good time to reassess your planning and make adjustments.
Below are three action steps that can have a big impact on your planning and your financial future. Sticking to just one of these resolutions could strengthen your financial stability and help you have a more comfortable and enjoyable retirement.
Principal of BAM Advisory Group