How to Ensure Your Retirement Plan Can Overcome Social Security, Tax and Other Changes
Times are changing. In recent months, we’ve seen significant changes to the United States Tax Code take place, and experts say these are the most comprehensive changes that have occurred in decades. There are also ongoing changes to Social Security rules, and there are inflationary measures at play as well. The economy is doing well right now, too. What does all of this mean to you? What might it mean for your existing retirement plan?
Factoring in the Changes
One key thing to keep in mind is that your retirement plan needs to be a fluid, moving investment plan. If you opened an account and never did much with it, you can’t expect it to grow, change, or continue to do well as ongoing economic changes play out. At the same time, we need to recognize that the impact these types of economic factors have on your retirement plan often depends on what types of underlying investments you have. In other words, every person will need to take a closer look at his or her current portfolio to determine how to make appropriate changes.
How Your Local Bank Can Help
All of this said, you shouldn’t worry — your retirement planning goals can be met even as economic factors such as these continue to play out. However, it is essential that you work closely with a financial advisor to maintain the right path towards your retirement goals. Your local bank can help you to do this by monitoring your changes and working to improve your portfolio. Here are a few considerations to keep in mind:
- Tax code changes can impact the number of deductions you’ll get in the coming years. They can also play a role in whether or not you have to pay a capital gains tax. It is important to understand the implications of these changes in the context of your portfolio.
- Social Security changes could impact how much money you need to have saved up before you retire. Some proposed changes aim to reduce the availability of Social Security funds. You should plan for either eventuality with your investor now.
- It may be time to look into higher interest-earning investment strategies, too. With interest rates on the rise, it may be time to boost your savings potential with new tools.
You don’t have to feel overwhelmed by this process. Instead, work closely with the retirement planning professionals at your local bank. Citizens National Bank’s team can help you to learn which accounts are best for you and aid you in selecting the right type of underlying securities. You will also want to work closely with our team to get a retirement plan growing quickly if you don’t already have one in place.
