Contribution limits increasing
New Contribution Limits
The IRS released updated retirement plan contribution limits for 2024. The good news is contribution limits are increasing as follows:
- Roth and Traditional IRAs will be increased to $7,000 ($8,000 age 50 and older)
- SIMPLE IRA contributions are increasing to $16,000 ($19,500 age 50 and older)
- 401k salary deferrals increasing to $23,000 ($30,500 age 50 or older)
For questions on retirement planning, contact our office.
In the world of psychology, Solution Focused Therapy (SFT) is a goal-driven approach to therapeutic change. Traditional therapy focuses on uncovering past events that are causing problems today. Linda grew up in a home where money was scarce. Her parents often fought over the inability to pay bills and mounting debt. One could see how those events could impact the way Linda feels about money in adulthood. Perhaps she has a looming sense that she never has enough. Maybe Linda feels like she is a person who is not intended to be financially stable. Solution Focused Therapy doesn’t give much attention to yesterday, it is forward-looking. The concepts of Solution Focused Therapy are highly effective in wealth creation because a significant portion of our future outcome is cause and effect.
Specific actions today create a result in the future - for example:
- $10,000 compounded at 8% for 10 years always grows to $21,000.
- Rare but severe crises, like dying prior to accumulating sufficient assets for your family, can be mitigated through the purchase of sufficient life insurance coverage.
In simple terms, the future we experience, can in part, be controlled by actions we take in the present. While I can’t necessarily control my investment return year to year, I can control my savings rate to make sure I reach my accumulation goals. While I can’t control when I die, I can take care of my estate documents to make sure my estate is settled in a manner that is in line with my values and desires.
Four Principles of Solution Focused Planning
- If it is not broken, don’t fix it. Stick to a sound financial plan. Let the masses chase shiny objects. Keep your eye on the prize.
- If it works, do more of it. Michelle has a habit of investing half of each raise she gets. Over time, Michelle has accomplished a 20% savings rate, and her accumulation plan is ahead of schedule. You are killing it, Michelle, keep it up!
- If it is not working, do something different. Mike says budgets are a hassle, yet each year he finds himself more and more in debt and unable to allocate money towards his future. It's not working Mike, time to get a grip on your finances.
- Small steps lead to big changes. Marvin and Jill, both age 25, make $60,000 per year. Marvin invests 8% of his income and Jill invests 10%. They both invest in the same investment strategy that (for simple illustration) has a compounding growth rate of 8%. By age 65 Marvin has $1.4 million in his account and Jill has $1.8 million. Just two percentage points resulted in hundreds of thousands of dollars in extra money
“Let me win, but if I cannot win, let me be brave enough to try.”
-Special Olympic Athlete Oath
I love that motto. It’s our kind of stuff. Records will be broken but the human spirit cannot and will not. Hundreds of years from now the things we own will be discarded, but the love, help, and support we give today to others will live on for generations to come. How will your time be best spent today?
Protect yourself from imposters -Carly Snyder, CAG Marketing
Spam, junk, phishing – whatever you prefer to call it – our email addresses seem to be under attack more and more. Especially when it comes to your investments and financial services, you should always be on the lookout for imposters.
Here is a common scam scenario:
- Someone will contact you via phone, email, text, online advertisement, or social media post.
- Claim to be security/technical support for a known and reputable company, such as Microsoft, or a trusted financial institution like SEI or Schwab.
- Ask you to download software and/or request remote access to your computer.
- Send you an email or text message with a link or attachment, which may ask you to approve/deny a transaction, set up new credentials, or take some other action regarding your account.
While it’s nearly impossible to stop imposters from contacting you, here are a few simple steps you can take to prevent them from stealing your information.
- If you did not initiate contact, try to confirm the legitimacy of the organization or person trying to reach you. If you are unsure, contact our office and we can help you.
- Do not assume you are speaking with your financial institution based on caller ID. Imposters can make it appear that texts, emails, or calls are coming from a business when they are actually not.
- Always use caution when you receive a request to send money urgently. If this happens, don’t hesitate to call our office and we can help confirm the request and timeline with SEI or Schwab.
- Check the email address and website URL for legitimacy before clicking. Often a scam link will have “.co” instead of “.com” – small clues can save you a lot of hassle.
If you are unsure, we always recommend that you don’t click on links or open attachments. Simply go directly to the financial institution’s website and log in your normal way and any legitimate messages or alerts will be visible.
Disclaimer: This newsletter is for informational purposes and is not intended to be individual investment advice without a consultation. Crosby Advisory Group, LLC provides investment, insurance and business growth strategies. Crosby Advisory Group, LLC is a registered investment advisor in Ohio, Florida and Texas. Investing involves risk including the potential loss of principal.