Enable Accessibility
×
Close
Personal Online Banking
All personal banking clients, please enter your online credentials here:
e‑Treasury Business Banking
Log in
Safeguarding your online banking sessions is our top priority. For information about how you can help protect your online banking sessions, or if you need additional assistance with your e-Treasury log-in, please contact Client Support at [email protected] or 855.274.2800.

Download our e-Treasury Secure Browser

Business Online Banking
If you need assistance, please contact Client Services at [email protected] or 855.274.2800.
e‑Treasury
Log in
Safeguarding your online banking sessions is our top priority. For information about how you can help protect your online banking sessions, or if you need additional assistance with your e-Treasury log-in, please contact TM Service at [email protected] or 212.575.8020.


Download our e-Treasury Secure Browser

Download the Sterling e-Treasury Token Client


Business Online Banking
If you need assistance, please contact Client Services at [email protected] or 855.274.2800

For optimal viewing experience, please use a supported browser such as Chrome or Edge

Download Edge Download Chrome

6 essential tips for retirement planning

Published on July 14, 2020 | LPL Financial

Retirement planning is all about the future, your future. Whether you are classified as a millennial, Gen Xers, women, or you are in your 40s-50s, retirement planning is a must. The key to successful retirement planning is starting young because it gives you more time to work towards your retirement goals. There are some keys to successful planning for those who have an employer and for business owners who wish to maintain their lifestyle after retirement.

1. Take full advantage of matching funds

While most of us do not have a pension plan we can depend on when we retire, one new benefit many have is matching funds offered by employers. These funds are dependent on your company retirement plans policy regarding matching funds. The sooner you start taking full advantage of matching funds, the better a cushion you will have after retirement.

2. Use the retirement savings credit

For those who are eligible for the retirement savings credit1 on their taxes, take this credit annually. This credit is available for many lower income earners and helps encourage you to save for retirement by offering a credit of up to $1,000 for single taxpayers and up to $2,000 for joint filers. These credits reduce the amount of income tax owed which allows you to invest in your retirement.

3. Maximize your health savings account

Your health savings account (HSA)2 can help you pay medical bills while you are working. However, thanks to the ability to maximize your donations while working, these funds can also be used during retirement to help you maintain your lifestyle. If you contribute the maximum amount annually, you can use these funds tax-free to pay out-of-pocket medical expenses after retirement.

4. Automate retirement savings

The best intentions often get sidetracked when it comes to saving for retirement. The sooner you have funds automatically sent from your pay to your retirement account, the better you will be later. Automatic withdrawals to your company-sponsored plan and automatic deposits on a regular basis to your non-employer based plans will help ensure you get a good start managing your retirement planning goals.

5. Know your risk threshold

Retirement planning at all ages involves savvy investing. While you are young, you should consider investing in a higher-risk portfolio. Taking some risk may allow you to increase your retirement nest egg. The older you get, the less risk you should be taking so that as you approach retirement, your portfolio is more stable.

6. Remain aware of contribution limits

One of the benefits of being in your 50s is there are options for increasing your contribution limits for your IRA plan3. Catch up contributions can help you put more money into your retirement plan while you are still working. Make sure you are taking full advantage to help you develop a safety net for after retirement.

While many of these tips are more useful for those who have income from an employer, many of them apply to those who are self-employed. As a business owner, you are entitled to many of the same benefits. Maximize your contributions to your business plan, or set up a Solo 401(k) plan4, and start saving for your retirement today. The sooner you start planning, the better the likelihood you can maintain your lifestyle after retirement.

 

1Retirement Savings Credit: https://www.irs.gov/taxtopics/tc610

2Health Savings Accounts (HSA): https://www.irs.gov/publications/p969

3IRA Contribution limits: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits

4One Person 401(k) plans: https://www.irs.gov/retirement-plans/one-participant-401k-plans

 

Important disclosures

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.

No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.

The information provided is not intended to be a substitute for specific individualized tax planning or legal advice. We suggest that you consult with a qualified tax or legal advisor.

LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.

LPL Tracking #1-919989 (exp. 12/21)

Related Resources

Webster InvestmentsArticles
The Americans with Disabilities Act and How It Helps Our Society
According to the Centers for Disease Control and Prevention (CDC), 61 million adults, or 26% of adults in the U.S., are living with a disability. If you or a loved one is disabled, it’s essential to understand the Americans with Disabilities Act (ADA), passed in 1990. So let’s dive deeper into the ADA and what it’s […]
Webster InvestmentsArticles
How a Financial Professional May Be Your Valuable Business Advisor
Small businesses have new reasons to consider the value of financial planning in working towards their business goals. Many owners are “bandonneurs” (a French word for “jack of all trades”) who may successfully wear many hats, but trying a DIY strategy for your financial planning may be a challenge even for the most diligent entrepreneurs. […]
Webster InvestmentsArticles
Life Insurance Simplified: Understanding the Fundamentals
Shopping for a life insurance policy doesn’t have to be confusing and overwhelming. If you take some time to understand the basics and how it works, you can better determine the coverage that may be beneficial for you and your family’s needs. What is life insurance? When life insurance is purchased, a legally binding contract […]
Connect With Us
Learn more about Webster products, services and the communities we serve.
We’d love your feedback
×