Skip to main content

Watch 'Behind Every Bear Market Is an Opportunity' Webinar recording

I Stock 96831851

If You’re Turning 50, Uncle Sam Says It’s Time to Celebrate

Photo of author, Teresa Michaels, CFP®.
Teresa Michaels, CFP®
Regional Manager and Financial Strategist

It seems like yesterday that I graduated from West Virginia University — a wide-eyed 21-year-old heading into the real world to make a difference. And now, here I am at the 50-year-old milestone – an actual quinquagenarian, according to Webster’s Dictionary.

How did I get to today? I have a daughter that has successfully graduated from Ohio University graduate school and a son navigating his own way through my alma mater as an undergraduate. Surely it should have clicked in my head that I too was aging. But like most moms, I was focused on my kids’ happiness and bright futures, never really stopping to consider my own aging.

Like so many, I now find myself constantly asking, “Where did the time go?”

Interestingly, it was Uncle Sam who reminded me that I was going to turn 50 in 2017. In early 2017, I had received the quarterly e-mail from my employer’s human resource department requesting any changes to my personal elections for the employee-sponsored 401(k) retirement plan. The form, as a standard, offers to all employees who are eligible the opportunity to participate in the catch-up contribution provision of the 401(k) plan.

At that moment, I felt a huge smile cross my face as I realized that I was turning 50 in 2017 and was now officially eligible to take advantage of this significant retirement planning opportunity!

What is the catch-up contribution provision? The IRS allows for additional contributions UP TO an additional $6,000 to your employer savings plan. Just imagine: If you simply added $1,000 more per year for the next 15 years and earned 6.5% per year, you would have over $24,500 additional retirement dollars in your account.

Working in the financial planning field, I know how important it is to make everyone aware of the many ways one can prepare and save for retirement. Accepting Uncle Sam’s generous gift of the additional catch-up provision is one simple way to successfully plan for your retirement and reach your “good life” goals.

Related Insights
I Stock 1063301176 JA Eblog

Rental Property: Investment or Job?

For individuals who have thought about getting into rental properties as an easy way to make cash while building assets for retirement, it will be important that you do your homework and set appropriate expectations of the venture. Learn more about calculating the returns on rental property.

Read More
Generations

Educate Your Family to be Good Stewards

Did you know nearly 90% of affluent wealth is lost by third generation? Sound multi-generational planning and education is key to increasing the likelihood that your family will be part of the 10% that “get it right.” We are proud of the work we do to help our clients be good stewards of their family wealth to grow for future generations. Learn more.

Read More
Parachute 1702689 1920 copy 800px

Three Skydiving Tenets That Will Help You Achieve Personal Financial Success

What core tenets for a master skydiver's success align exactly with the core principles for successful financial planning? Find out here and start your journey to mastering your wealth!

Read More
Play