The SECURE 2.0 Act of 2022 seeks to increase retirement savings and expand coverage to employer sponsored retirement plans. New provisions such as mandatory automatic enrollment, higher catch-up contributions for older workers, and part-time worker 401(k) eligibility are intended to support higher plan participation, address longevity risks, and improve retirement readiness among Americans.
Is a recession coming… or is one already here?
59 ½ is a big age for retirement savers. Once reaching 59 ½, participants in qualified retirement accounts (401k, IRAs, etc.) may withdrawal funds penalty-free.
As a financial firm, we work with “how much” questions all the time. As a team with life insurance expertise, one ‘how much question’ we hear quite often is, “How much life insurance coverage does my family need?”
“I wish I had some kind of ‘guard rails’ that would keep me on my diet track. An automated system that took the cake away before I ever even saw it. Will Power that didn’t rely on my own ‘will’. I don’t have them for my diet, but I do for saving money.”
We plan, and when the time comes we put those plans into action and we keep moving forward. Who knows when it will rain or for how long… but when it does (and it will), we will be ready.
I let him know that while it was not inexpensive, it was fair and worth it and something we wanted to do. More importantly, it was something his Mom and I had been planning and saving for.
It frustrates me that we don’t do more in this country to prepare our children for the financial world they’ll be thrust into. It isn’t about trying to get rich. It’s about understanding concepts, making good decisions (and understanding how bad ones can affect you), valuing a dollar earned, recognizing that time is your most valuable asset and that “rainy days” happen.
Today I’m not thinking about the future so much. I’m remembering the past and embracing today, and reminding myself that all three – past, present and future – are important.
Whether it’s a 401k or Roth IRA, a Simple Plan or simply a plan, retirement savings magically allow us to glimpse at our futures and see our lives years down the road. Even better, they allow us to change the future if we don’t like what we see.