Retirement in Motion

Monday December 21, 2020 at 11:30PM  |  Tips and Resources That Everyone Can Use

Knowledge is Retirement Power

Looking to reduce your taxes? It’s always good to remind yourself that your workplace retirement plan offers one of the best tax breaks available. That’s because your contributions may be excluded from your federally taxable income (as well as taxable state income, if applicable). Just think of the tax savings you could realize if you contributed the maximum allowed in 2020 to your 401(k) plan ($19,500, plus another $6,500 if you are age 50 or older)! Not only do you get some nice tax savings each year for contributing to your plan, you’re also helping to set yourself up for the possibility for better financial results years down the road.

Q&A

Q: What does it mean to be “vested” in my retirement account?

A: “Vesting” means that you own all of the money in your workplace retirement account. You are always 100% vested in your own contributions to your plan, but your ownership of your employer’s contributions may be governed by certain vesting rules. For example, you may become 100% vested only after a certain number of years of employment. You can check with your benefits administrator to confirm your vesting schedule.

Quarterly Reminder

With identity theft, data breaches, ransomware, and spyware becoming more and more common, it’s more important than ever to protect your financial information — especially if you handle most of your financial business online. Managing your various passwords is probably one of the most important things you can do. A good rule of thumb is to reset your financial log-in passwords every 90 days, and don’t use the same password for more than one account.

Tools & Techniques

Many identity theft victims have found out about credit accounts opened in their name by reviewing their credit reports. That’s one reason financial professionals recommend reviewing your reports regularly. The reports generally contain the same information, so you should consider requesting and reviewing one agency report every four months, which allows you to keep a closer eye on your reports and still obtain them without cost. Be sure to use the free site http://www.annualcreditreport.com to obtain your reports. The site also includes additional information on what to look for in your report and other resources and tips for safeguarding your identity.

Corner on the Market | Basic financial terms to know

Emerging Market – Generally, this refers to economies that are in the process of growth and industrialization. Developing markets, such as Africa, Asia, Eastern Europe, the Far East, Latin America and the Middle East may hold significant growth potential in the future. Investing in emerging markets may potentially provide significant rewards, but it also comes with significant risks. Before investing in emerging markets, you may want to consult with a financial professional to help decide if it is appropriate for you.

© 2020 Kmotion, Inc. This newsletter is a publication of Kmotion, Inc., whose role is solely that of publisher. The articles and opinions in this newsletter are those of Kmotion. The articles and opinions are for general information only and are not intended to provide specific advice or recommendations for any individual. Nothing in this publication shall be construed as providing investment counseling or directing employees to participate in any investment program in any way. Please consult your financial advisor or other appropriate professional for further assistance with regard to your individual situation.