Asset Map Video Posted on August 28, 2020October 9, 2023 by ksimas <span data-mce-type="bookmark" style="display: inline-block; width: 0px; overflow: hidden; line-height: 0;" class="mce_SELRES_start"></span> Big Test
Retirement Plan Contribution Limits for 2020 Posted on June 10, 2020June 18, 2020 by ksimas One of the most basic principles of successful long-term investing is to invest as much as you can as soon as you can. For 2020, many of the annual retirement plan contribution limits have increased from their 2019 levels. Limits for 2020 include: For individuals under age 50, the maximum contribution to 401(k), 403(b) and 457(b) plans increased to $19,500. For individuals age 50 and older, catch-up contribution to 401(k), 403(b) and governmental 457(b) plans has increased to $6,500. The maximum combined employee and employer contribution to 401(k) and 403(b) plans increased to $57,000. For individuals under age 50, the maximum contribution to Traditional and Roth IRAs remains at $6,000. For individuals age 50 and older, the additional catch-up to Traditional and Roth IRAs remains at $1,000. The 403(b) plan service-based catch-up contributions, available to 403(b) account holders with at least 15 years of service with their current employer, remains at $3,000.1 If your employer offers both a 403(b) and a governmental 457(b) plan, then you can contribute up to the combined maximum annual contributions to each plan. This means if you are under age 50, you can contribute up to $19,500 to each plan for a total maximum 2020 contribution of $39,000. If you’re age 50 or older, you can contribute up to $26,000 to both the 403(b) plan and a governmental 457(b) plan for a maximum 2020 contribution of $52,000. 2020 Retirement Plan Contribution Limits Plan 2020 Limit 401(k), 403(b), 457(b) and SAR-SEP Plans $19,500 Age 50 & Over Catch-Up for 401(k), 403(b) and Governmental 457(b) Plans 403(b) Service-Based Catch-Up for 15+ years with Employer1 $6,500 $3,000 Roth/Traditional IRA Age 50 & Over Catch-Up $6,000 $1,000 SIMPLE Plan Elective Deferral Limit Age 50 & Over Catch-Up $13,500 $3,000 Defined Contribution Maximum Combined Employer and Employee Contribution $57,000 Contribute as Much as You Can, as Soon as You Can By investing as much as you can as soon as you can, you can take advantage of the power of long-term compound growth. The hypothetical table below illustrates how by contributing just $1,000 more per year you can increase the size of your nest egg over the long term.2 After 10 Yrs After 20 Yrs After 30 Yrs $10,000 per Year $139,716 $389,927 $838,017 $11,000 per Year $153,688 $428,920 $921,818 Savings Increase $13,972 $38,993 $83,802 1. Up to a $ 15,000-lifetime limit. Other conditions apply. 2. Assumes a 6% average annual growth rate and a single lump sum contribution at the beginning of each year. Actual returns may be higher or lower. Table is for illustration purposes only and is not intended to indicate the past or future performance of any investment options available through the PlanMember Program. This hypothetical illustration does not include sales charges or other expenses. This communication is not intended to be tax, legal or accounting advice. Issues could exist that can affect the tax treatment of a transaction. Therefore, taxpayers should seek advice from an independent tax, legal or accounting advisor before acting on any information presented. This information cannot be used to avoid tax penalties.
6 Tips for smart holiday spending Posted on May 26, 2020June 18, 2020 by ksimas Everyone wants to celebrate generously during the holidays, but it’s important to remember your financial plan and savings goals. Right around Thanksgiving, your calendar fills up with events that can trigger more spending than you realize. From decorations to gifts, and meal planning to party clothes, the costs creep up. These six tips will help keep your season debt-free and bright. 1. Create a budget and stick with it Prepare your holiday budget as early in the year as possible. Remember to include unexpected expenses such as travel, wrapping supplies, shipping and postage. Even additional groceries for out-of-town guests can add up, and don’t forget those new party clothes. Next, consider your monthly income and expenses, then save enough to cover holiday costs. If you prefer not to incur credit card debt, then save into an account and pay cash only. Next, make a list of gift recipients and set a reasonable amount per person. And finally, consider adding 10% to your overall shopping budget to cover gifts for teachers, neighbors, co-workers, and party hosts and hostesses. 2. Start early and compare prices Whether you prefer shopping in local stores or online, start early and compare prices. Don’t wait for last-minute holiday “deals,” as year-round budget shoppers drive many retailers to offer good deals throughout the year. As a bonus, shopping early is more enjoyable and relaxing, and eliminates the stress of stores crowded with shoppers who waited until the last minute and show it on their frowning faces. 3. Avoid self-gifting Don’t give in to the “three for them, one for me” temptation. Let your loved ones give you gifts. If there’s something you really want or need but don’t get from someone else, carefully evaluate the need and then buy it for yourself when after-holiday sales are in high gear. As always, though, you should stick to your budget. 4. Resist impulse buying When you’ve completed shopping, and the gifts are wrapped and ready to give, resist the urge to buy just one more thing, even if you think it would be “perfect.” Retailers are experts at encouraging impulse buying. Remember your spending plan and just say no. 5. Pick names instead of giving a gift to everyone Instead of buying for every friend, aunt, uncle and cousin, pick names a month before your holiday get-together, then take time to find the perfect present for your secret recipient. Giving gifts among your gathered group of family and friends is fun, and seeing all the joy can be priceless. It’s important, though, to set a dollar limit so everyone spends the same amount. 6. Plan celebrations that are gift-free and joyful Showing your friends and the people you love that you care about them can be more meaningful than any gift. Find ways to show your loved ones they are your greatest gifts in life. Have a cocktail party and invite everyone to share the year’s greatest accomplishments, milestones, and hopes for the future. Have people write on paper, roll and ribbon each message, and drop in a basket for everyone to share. Connect to people in ways that will resonate like wrapped gifts simply can’t.
Maintaining a long-term focus Posted on May 26, 2020June 3, 2020 by ksimas The stock market’s history of volatility and growth As we all struggle with the unprecedented coronavirus crisis and the corresponding stock market crash, it may provide some small degree of comfort to view the current market turmoil from a historical perspective. When investing for the long term, it’s important to keep in mind that while stocks have far outperformed other investments over the long term, they have also been subject to short-term periods of sharp decline. Financial Market Performance Growth of $10,000 investments From January 1, 1970 – December 31, 2019 Source: Morningstar Office. Stocks measured by Standard & Poor’s 500 Index, bonds by the Ibbotson Associates SBBI US Long-Term Government Bond Index, and money market by the SBBI US 30-Day Treasury Bill Index. All results assume reinvestment of dividends on stocks or coupons on bonds and assume no taxes. It is not possible to invest directly in an index. The hypothetical investment results are for illustrative purposes only and should not be deemed a representation of past or future results. Actual investment results may be more or less than those shown. The graph above illustrates the growth of hypothetical $10,000 investments in stocks, bonds and money market securities over the last 50 years. Notice that during this 50-year period, stocks have provided vastly superior long-term performance than bond or money market investments, but at the same time have subject to a far higher level of short-term volatility. This volatility is illustrated by the more dramatic peaks and valleys of the blue line depicting stock market performance. Note that at the end of the fifty-year period, the $10,000 stock investment has grown to nearly three times the amount of the bond investment, and more than five times the amount of the money market investment. Included in this 50-year time period were the “2nd Black Monday” stock market crash of 1987, the “dot-com bust” crash of 1999–2000, and the “Great Recession” crash of 2008. Following these and other significant stock market declines, the market rebounded to eventually reach new record highs. While past stock market performance is not a guarantee of future results, the historical performance of the market suggests it will eventually recover from its current decline just as it did with previous ones. It is possible to lose money by investing in a money market fund. Although the fund seeks to preserve the value at $1.00 per share, it cannot guarantee it will do so. The fund may impose a fee upon the sale of shares or may temporarily suspend sales of shares if its liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide such support at any time.
3 Tools to Help Build Your Retirement Savings Posted on May 14, 2020 by ksimas All teachers have that one class that makes them feel like retirement can’t come soon enough. If that’s you this year, then it’s time to kick your savings into high gear. However, saving like you are in a mad dash toward retirement takes the dedication of a marathoner. Here are three tools to help you build your retirement savings. 1. Calculate how much you need to save The question of how much you need to save for retirement can be as big a buzzkill as seeing a back-to-school ad on your first day of summer vacation. The many variables used to determine your retirement savings needs can make calculating this magical number complex. But, once you’ve done some mental math and have a goal number in mind, our Investment Goal Calculator can help you figure out what you need to save today to get there. With it you can explore the many factors involved, including your initial savings, periodic contribution amounts and frequency, years to accumulate, interest compounding, inflation and more. By experimenting with these numbers using the calculator, you’ll see what you can do today to reach your retirement investment goal. 2. Pre-tax savings Also referred to as “tax-deferred” savings, in that it’s income you won’t pay taxes on now, but will when withdrawing from your retirement savings, pre-tax savings is automatically taken from your paycheck and deposited in your retirement savings plan. It can make saving for retirement easy and help you avoid the feeling that you’ve got to give something up to save. Because the money is automatically deposited into your savings instead of your bank, it doesn’t necessarily feel like you’re making a sacrifice. For those who have trouble saving, this may help establish positive savings habits. 3. A savings app Digital spending has become increasingly easy and convenient with applications like Venmo, Amazon Prime, and other retailers who make paying for goods and services a simple click of a button. Saving for retirement with the help of apps can be equally as simple. Try these apps to help you save using digital technology. Created by Intuit, Mint helps you create budgets, categorize spending to eliminate superfluous expenses, pay bills, vet credit card programs, and review your overall financial picture to find ways to save money and reduce fees. As a smartphone app, Mint can send you notifications and reminders to help keep you on track. Qapital and Acorns are both savings apps built on the idea of investing leftover funds into a savings account. Qapital invests unspent budget surplus into your savings account and allows you to set reminders to save when ad-hoc or contractor payments are received. Acorns use what they call ‘micro-investing.’ For each purchase you make, Acorns will round up to the nearest dollar and automatically invest the spare change. Budgeting apps like Mvelops and Claritymoney help you monitor your spending and both suggest ways to save, plus alert you if you go over budget. Clarity Money goes so far as to use AI to monitor your spending habits. Mvelopes uses Certified Budgeting coaches to help you stay on budget and increase your savings.
What are Mutual Funds? – MemberMinds Video Posted on May 12, 2020June 29, 2020 by ksimas A mutual fund is a portfolio of securities such as stocks or bonds. Investors can own shares of a mutual fund and over time can earn capital gains or experience capital losses. In this video, MemberMinds host Tom Nugent talks with Chris Janeway, a PlanMember Financial Professional. They discuss: The basics of mutual funds and their advantages and disadvantages How mutual funds are managed and who chooses the securities included in the portfolios The differences between managed and indexed mutual funds Costs related to owning mutual funds and the various expenses and fees Knowing when a mutual fund may be the right investment vehicle for your overall investment plan
529 College Savings Plans – MemberMinds Video Posted on May 12, 2020June 16, 2020 by ksimas <span data-mce-type="bookmark" style="display: inline-block; width: 0px; overflow: hidden; line-height: 0;" class="mce_SELRES_start"></span> A 529 plan allows individuals to save money for college on a tax-advantaged basis and can be a great vehicle to help pay for eligible college expenses. Many parents and students are trying to figure out how best to save for the high cost of college. MemberMinds host Tom Nugent and Chuck Riharb, Business Development Officer at PlanMember discuss 529 plans. Together they review: What 529 plans are and the tax advantages they provide Who can use the proceeds of a 529 and what qualified expenses include Who can start a 529 plan and other features of 529 plans To get further insight about 529 plans and other college savings vehicles, contact your PlanMember Financial Professional.
Beneficiaries – MemberMinds Video Posted on May 12, 2020June 29, 2020 by ksimas Proper designation and regular review of your retirement account beneficiaries are essential to ensuring that what remains in your accounts after you pass on goes exactly where you want. All too often, improper designation or failure to update account beneficiaries leads to unnecessary delays, taxes, legal battles or the money simply not going where it was intended. Angel Sugleris, Assistant Vice President of Human Resources at PlanMember, and host Tom Nugent discuss the importance of beneficiary designation. Additionally, they cover: State regulation for spousal beneficiary designation Naming a trust or a will as a beneficiary The importance of reviewing your beneficiary designations
Working with Financial Advisors – MemberMinds Video Posted on May 12, 2020June 16, 2020 by ksimas Working with a financial advisor can help you tackle important financial decisions about retirement planning, but the decision of who to choose can be difficult. This episode of MemberMinds on the advantages of having a financial advisor and some tips on how best to select one. Topics include: What to look for when researching potential financial advisors What qualifications and credentials financial advisors can have and what they mean What a relationship with a financial Advisor means and what to expect To get more information about selecting a financial advisor, contact your PlanMember Financial Professional.
Roth IRA – MemberMinds Video Posted on May 12, 2020June 29, 2020 by ksimas <span data-mce-type="bookmark" style="display: inline-block; width: 0px; overflow: hidden; line-height: 0;" class="mce_SELRES_start"></span> Roth IRAs are after-tax individual retirement plans created to help individuals save for retirement. Because it allows individuals to save after-tax dollars and provides tax-free income in retirement, a Roth IRA may have advantages for many investors. In this episode, MemberMinds host Tom Nugent talks with Greg Marsh, Registered Representative at PlanMember Securities, about the differences between a Traditional IRA and a Roth IRA and when you should consider one over the other. Additionally they discuss: The tax advantages of a Roth IRA How household income can affect your ability to contribute to a Roth IRA Conversion from Traditional IRAs into Roth IRAs