Financial wellness isn’t just about percentages. It’s about aligning your money with your life goals. This year, if you haven't already, start a new tradition to sit down with your loved ones annually to discuss savings goals and expectations for the future. This simple habit brings clarity and confidence to your financial journey. As an added bonus- if you have children, it's a great way to implement and share the importance of financial well-being!
Whether you’re managing your retirement savings on your own or working with a trusted advisor, staying on top of your 401(k) is a meaningful step toward long-term financial wellness. Life moves fast and so do changes to the financial landscape. Regularly reviewing your retirement savings ensures you’re not leaving money on the table and are fully leveraging your plan’s benefits.
1. Maximize Your 401(k) Contributions
The IRS has updated contribution limits for 2024. Be sure you’re contributing as much as you comfortably can:
Employee Contribution Limit: $23,000 for 2024.
Catch-Up Contributions: If you’re 50 or older, add an extra $7,500 for a total of $30,500.
Maximizing contributions lets you take full advantage of tax-deferred growth. If contributing the full amount isn’t realistic, aim to increase your savings incrementally—even small adjustments add up over time.
2. Don’t Miss Out on Your Employer Match
If your employer offers a matching contribution, this is free money you can’t afford to miss. A simple rule: Contribute at least enough to get the full match.
For example, if your employer matches 100% of the first 4% you contribute, put in at least 4%. Think of it this way: your employer’s match is part of your compensation—not taking full advantage of it is like leaving part of your paycheck behind. Over time, those matching dollars—and the compound growth they generate—can make a significant difference in your retirement savings. Double-check with HR or review your benefits statement to confirm your match policy. A few minutes of effort now could pay off for decades to come.
3. Supercharge Savings with Catch-Up Contributions
If you’re 50 or older, take advantage of catch-up contributions to boost your retirement savings. This extra $7,500 per year helps you strengthen your strategy and make up for lost time. Whether you’re playing catch-up or simply building a bigger retirement cushion, every additional dollar saved today grows tax-deferred, helping secure your future.
4. Rebalance Your Investments
Your 401(k) isn’t just about how much you save—it’s about where you save it. Market changes can shift your investment allocation over time, so take a moment to review your portfolio:
Does your mix align with your risk tolerance and goals?
Are you using all the investment options available in your plan?
Regularly rebalancing keeps your savings strategy on track.
5. Build a Relationship with a Financial Advisor
Your 401(k) is just one piece of your overall financial plan. A trusted financial advisor can help you integrate it into a broader strategy tailored to your goals. Advisors bring clarity to complex decisions, like managing contributions, rebalancing investments, and planning for retirement milestones.
401(k) plans are a powerful tool for building long-term financial security, but they work best when actively managed. Update your contributions, check for employer matches, and ensure your investments align with your goals. Want to take it a step further? Schedule a family meeting to clarify your shared vision for the future and consider working with a financial advisor to make the most of your plan.
Who We Are
At Colmina, we are dedicated to building a community centered around the well-being of those we care for. Our commitment to fiduciary advice ensures our decision-making is always in the best interest of our clients. No matter the twists and turns of the financial market, our advice will adapt to match so that your plans can stay true to the course.
Colmina strives to earn and maintain the trust of our clients. We are dedicated to crafting customized plans and personalized portfolios that are tailored to meet your goals.