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Tom Meaglia, ChFC®, AEP®,

CLU®, CRPC®, MSFS

Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507

 

Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750

 

Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120

 

Email: tom@meagliafinancialconsulting.com

Website: www.meagliafinancialconsulting.com

March/April 2019

Avoid These Retirement Planning Mistakes

Worried senior couple checking their bills at home

It’s easy to put things off until tomorrow, especially when that tomorrow is years away. This attitude is just one of many ways we can derail or delay saving for retirement. Here are some mistakes to avoid.


Starting Late.
Check out www.investor.gov’s compound interest calculator to figure how time can work to your advantage. If you contribute $800 per month that gains 5% annually, compounded daily, you will accumulate over $1.2 million after 40 years. Delay contributions 20 years, double the monthly contribution to $1,600 with the same terms over the next 20 years, and you’ll have about $660,000. Time and compounding make a huge difference, so save early and regularly.


Investing Inappropriately.
Time to recover may help ease the impact of market volatility when you’re young. If you’re retired, you may want to invest for enough growth to match inflation, but more conservatively than when you were younger.


Not Maximizing Your Employer’s 401(k) Match.
Don’t leave money on the table. If your employer matches some of your contributions, consider putting in at least that amount.


Going Without a Retirement Account.
If you don’t have a retirement plan through work, consider opening and contributing to an individual IRA. You have until the tax filing deadline in April to have it count for 2018.


Taking Plan Loans for Vacations.
Don’t tap your retirement funds for a frivolous expense, which puts you behind the eight ball for retirement and costs you interest, too. See the earlier interest calculator example.


Taking Plan Loans for College Expenses.
This isn’t a frivolous expense, but you and your child may be able to borrow or save for it in more appropriate ways. You can’t borrow for retirement.


Not Taking Advantage of an HSA.
Health Savings Accounts are triple tax-free. This means tax-deferred contributions, tax-deferred earnings and tax-free distributions for qualified health care expenses. After age 65, you can take withdrawals for any reason penalty free — just pay income tax on the unqualified amount.


Making the Ultimate Mistake.
You haven’t created a long-term savings strategy? Work with a financial professional to create one and fine-tune it as your situation changes.


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Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
Insurance and annuity products are not sold through Fusion Capital Management. Fusion does not endorse any annuity or insurance product, nor does it guarantee any insurance or annuity performance. Annuity and life insurance guarantees are subject to the claims-paying ability of the issuing insurance company. If you withdraw money from or surrender your contract within a certain time after investing, the insurance company may assess a surrender charge. Withdrawals may be subject to tax penalties and income taxes. Persons selling annuities and other insurance products receive compensation for these transactions. These commissions are separate and distinct from Fusion's investment advisory fees.
Meaglia Financial Consulting and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

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