Year-End Checkup: Are You On Track for Retirement Goals?

Posted on Dec 5, 2024

As the year draws to a close, it’s the perfect time to reflect on your financial health and ensure you’re on track to meet your retirement goals. A quick year-end checkup can help you identify gaps, celebrate progress, and make adjustments for the upcoming year. Here are a few steps to guide you:

1. Review Your Contributions
   The 2024 contribution limit for 401(k)s is $22,500, with an additional $7,500 catch-up for those aged 50 and older. Have you maxed out your contributions? If not, consider increasing your contributions for the remaining pay periods or using any year-end bonuses to close the gap. Even a small increase in contributions can yield significant growth over time.
   
   
2. Assess Your Investment Portfolio
   Retirement accounts grow not just through contributions but through smart investing. Take a moment to review your 401(k) investment choices. Are they aligned with your risk tolerance and retirement timeline? A balanced, diversified portfolio can help weather market fluctuations and maximize returns. Periodic portfolio reviews are essential to ensure your strategy stays aligned with evolving market conditions and personal goals.
   
   
3. Check Employer Matching
   If your employer offers matching contributions, ensure you’re contributing enough to take full advantage. Missing out on matching is like leaving free money on the table.
   
   
4. Revisit Your Retirement Goals
   Life changes, and so do retirement plans. Reflect on your current goals: When do you plan to retire? How much do you need to maintain your desired lifestyle? Tools like retirement calculators can provide a snapshot of your progress. Revisiting your goals regularly ensures you stay on track and can adjust for unexpected changes or opportunities.
   
   
5. Plan for Next Year
   Use this time to set goals for 2025. Can you increase your contributions? Small, consistent actions now can make a big difference later. Planning ahead allows you to approach the new year with clear intentions and actionable steps for financial growth.

By prioritizing your retirement checkup, you set yourself up for a financially secure future. Here’s to starting the new year with confidence and clarity!

This material is provided for informational purposes only, and is not intended as authoritative guidance, legal advice, or assurance of compliance with state and federal regulations.