Turbo Charge Your Retirement Savings Contributions
You may be able to make the most of higher catch-up and contribution limits. It is possible to invest as much as $18,500 in a 401(k), 403(b), or 457. If you’re 50 or older you can now add an additional $6,000.
You should speak with your financial adviser or wealth manager about how you can best ensure that your actions serve your plans. For example, you can set up an automatic monthly payment into your IRA so that you meet the yearly limit of $5,500 ($6,500 if you’re 50 or older). Remember, if your spouse does not work but you do, you can contribute into an IRA in their name.
Education Planning
Is there any more meaningful way to plan for the future than to invest in the education of children or grandchildren? If you gift to a 529 Plan, or, in the case of loved ones abroad, other education savings vehicles – for example an offshore or onshore regular savings plan – you can make a real difference to the futures of those who mean the most to you.
529 plans allow for tax excludable individual gifts of up $15,000 or, in the case of gifts made by couples, up to $30,000. Your tax adviser or wealth manager can discuss all these options with you, as well as any possible state-specific tax deductions or cross-border tax issues you might encounter.
Review Your Investments
Although the ideal situation is to remain committed to your long-term strategy in pursuit of your ultimate financial and retirement goals, it is always a good idea to make a yearly review of your investment portfolio. This is especially true for those with cross-border financial interests who may face multiple taxation and asset structuring challenges. For example, if you have recently moved from the UK to the United States, you may find that certain accounts such as your UK ISA are no longer efficient or viable.
You may also decide that now is the time to think about a UK pension transfer to maximise and consolidate your investment. And with certain economic and political changes on the horizon (yes, we’re talking Brexit) diversification and a change of geographical investment could be key to making 2019 a beneficial year.
Blacktower in the United States
Blacktower can help you make sense of your financial and retirement plans for the year and decades ahead.
We take a holistic approach to your wealth management and can help you consider all the important factors, including cross-border restrictions and opportunities.
For more information about how we may be able to help you effectively manage your wealth and retirement planning in the US, contact us today.
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
Investment advice and investment advisory services offered and provided through Blacktower Financial Management US, LLC. This communication is for informational purposes only based on our understanding of current legislation and practices which are subject to change and are not intended to constitute, and should not be construed as, investment advice, tax advice, tax recommendations, investment recommendations or investment research. You should seek advice from a professional before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.