If you are funding a Roth IRA automatically on a monthly basis, you will want to watch out for this mistake that could cost you greatly. Be aware of the Roth IRA income limits. Have a question you want to be answered on the show? Call or text 574-222-2000 or leave a comment! Want to speak with a Certified Financial Planner™? Visit or call 574-247-5898. Find more information about the Wise Money Show™ at LINKS: Be sure to stay up to date by following us! Facebook - Instagram - Twitter - Want more Wise Money™? Read our blog! Listen on Podcast: Subscribe on YouTube: Mike Bernard, CFP® offers advisory services through KFG Wealth Management, LLC dba Korhorn Financial Group. This information is for general financial education and is not intended to provide specific investment advice or recommendations. All investing and investment strategies involve risk including the potential loss of principal. Asset allocation & diversification do not ensure a profit or prevent a loss in a declining market. Past performance is not a guarantee of future results....(read more)
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If you have a Roth IRA, congratulations! You've made a smart decision to save for retirement with tax-free growth potential. But, there's a mistake that many people make with their Roth IRA when they get a pay raise, and it could cost them thousands of dollars in the long run. The mistake is failing to increase your Roth IRA contribution when you get a raise. Many Americans neglect to do this, as they don't seem to consider how easy it is to have their lifestyle inflate with their income. Here is why it's so important to increase your Roth IRA contribution as you get a pay increase. Imagine you started saving $300 a month in your Roth IRA when you earned $60,000 annually. That's 6% of your income - a huge accomplishment in itself. Then, flash forward a few years, and you've received a raise to $80,000 yearly. You've adjusted your spending to fit your new earnings and haven't thought twice about increasing your monthly Roth IRA contribution. This mindset can end up sabotaging your retirement savings since, at the same 6% contribution rate, you're only saving $4000 annually now. And if you maintain that rate, you're going to have less money saved at retirement. In the end, the take-home message is that as your income increases, you should strive to increase your contributions to your Roth IRA by a proportional amount. Doing so allows you to capitalize on this sweet spot of growth and tax-free investment. To avoid this mistake and take the full benefit out of contributing to a Roth IRA, talk to your financial advisor or accountant about how to adjust your contribution settings to maximize the amount saved. Ensure to learn about the contribution limits, so you know how much you can save and how much you save in taxes. In conclusion, don't let a pay raise put a damper on your long-term financial goals. Take a few minutes to update your Roth IRA contributions when your salary increases, and you'll be grateful you did when it's time to retire. https://inflationprotection.org/dont-make-this-roth-ira-mistake-if-you-get-a-pay-raise/?feed_id=79682&_unique_id=6417b4eb37838 #Inflation #Retirement #GoldIRA #Wealth #Investing #financial #korhorn #RothIRA #rothiraincomelimits #rothiraincomelimits2023 #RothIRAMistakes #wisemoneyshow #RothIRA #financial #korhorn #RothIRA #rothiraincomelimits #rothiraincomelimits2023 #RothIRAMistakes #wisemoneyshow
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