Happy New Year!!
You did it! You survived the gauntlet of Holidays that end each calendar year. With the new year comes new opportunities and new changes - some good and some bad; and with so much on your mind and in the business of life at the end of the year (traveling to friends and family, buying gifts, making meals, playing games and watching college football), it is easy to get caught up in bad habits and forget to finish the year strong.
Getting Out of Bad Habits
If you’re like me, no matter how well I plan, the end of the year always tempts me to jump back into bad habits - like spending more than I make or eating too much food, etc. I’ve heard all the excuses… “Everybody’s doing it!” “But I have to buy presents for my ex-wife’s second cousin’s stepson.” “I want my kid to have the best Christmas ever.” “I just HAVE to have it!” Bad habits create a hectic lifestyle, and that’s not how you want to begin a new year. For instance, if you spent more than you made over the holidays, you start the new year off having to get out of debt. The Bible clearly states that the borrower is a slave to the lender (Proverbs 22:7). I’m not saying you can’t have fun, but what are the consequences of your actions? How will you pay off that debt? Do you have to pause your contributions to your 401(k) or Roth IRA? If so, this has a compounding effect on your retirement. And for what? So, you could “keep up with the Jones’s?”
There is hope! This is a new year, and with the new year comes new goals and resolutions. Did you know you have until Tax Day of 2023 to max out your IRA or Roth IRA for 2022? That’s right! If you contributed $3,000 through December 31, 2022, and you want to continue to take advantage of 2022, keep plugging away with those contributions! Just make sure your contributions are coded for the correct year. The maximum contribution limit for IRAs and Roth IRAs in 2022 was $6,000 ($7,000 if 50 or older), so as long as you don’t contribute more than the contribution limit, you can keep contributing towards the 2022 year until Tax Day of 2023.
Things to think about for 2023
IRA/ Roth IRA Contribution limit - $6,500 ($7,500 if 50 or older). If you plan to max out your 2023 contributions, here is the simple update you need to do based on how you contribute:
Update your monthly contribution to $541.66 ($625 if 50 or older)
Update your twice/month contribution to $270.83 ($312.50 if 50 or older)
Update your biweekly contribution to $250 ($288.46 if 50 or older)
Update your weekly contribution to $125 ($144.23 if 50 or older)
401(k), 403(b), Thrift Savings Plan, and most 457 Contribution limit - $22,500 ($30,000 if 50 or older)
Click HERE to see the highlight of changes for 2023
Luckily for you, we’ve got the answer that works every time. If you’re a Dave Ramsey follower, you’ve heard him harp on 7 action steps that will guarantee you financial success in life: the 7 Baby Steps. No matter where you are financially, these 7 steps will help you get out of debt, build wealth, and “live and give like nobody else.” If you would like help on your financial journey, reach out to your Local & National SmartVestor Pro and schedule a meeting. We are happy to meet you where you are and answer any questions you may have.
PLAYING CATCHUP FOR 2022 IRA CONTRIBUTIONS
January 5, 2023
Whitaker-Myers Wealth Managers is an SEC-registered investment adviser firm. The information presented is for educational purposes only and intended for a broad audience. The information does not intend to make an offer or solicitation to sell or purchase any specific securities, investments, or investment strategies. Investments involve risk and are not guaranteed. Whitaker-Myers Wealth Managers reasonably believes that this marketing does not include any false or misleading statements or omissions of facts regarding services, investment, or client experience. Whitaker-Myers Wealth Managers has a reasonable belief that the content will not cause an untrue or misleading implication regarding the adviser’s services, investments, or client experiences. Please refer to the firm’s ADV Part 2A for material risks disclosures.
Past performance of specific investment advice should not be relied upon without knowledge of certain circumstances of market events, the nature and timing of the investments, and relevant constraints of the investment. Whitaker-Myers Wealth Managers has presented information in a fair and balanced manner.
Whitaker-Myers Wealth Managers is not giving tax, legal or accounting advice, consult a professional tax or legal representative if needed.
Copyright (c) 2023 Clearnomics, Inc. and Whitaker-Myers Wealth Managers, LTD. All rights reserved. The information contained herein has been obtained from sources believed to be reliable, but is not necessarily complete and its accuracy cannot be guaranteed. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness, or correctness of the information and opinions contained herein. The views and the other information provided are subject to change without notice. All reports posted on or via www.clearnomics.com or any affiliated websites, applications, or services are issued without regard to the specific investment objectives, financial situation, or particular needs of any specific recipient and are not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Past performance is not necessarily a guide to future results. Company fundamentals and earnings may be mentioned occasionally, but should not be construed as a recommendation to buy, sell, or hold the company's stock. Predictions, forecasts, and estimates for any and all markets should not be construed as recommendations to buy, sell, or hold any security--including mutual funds, futures contracts, and exchange traded funds, or any similar instruments. The text, images, and other materials contained or displayed in this report are proprietary to Clearnomics, Inc. and constitute valuable intellectual property. All unauthorized reproduction or other use of material from Clearnomics, Inc. shall be deemed willful infringement(s) of this copyright and other proprietary and intellectual property rights, including but not limited to, rights of privacy. Clearnomics, Inc. expressly reserves all rights in connection with its intellectual property, including without limitation the right to block the transfer of its products and services and/or to track usage thereof, through electronic tracking technology, and all other lawful means, now known or hereafter devised. Clearnomics, Inc. reserves the right, without further notice, to pursue to the fullest extent allowed by the law any and all criminal and civil remedies for the violation of its rights.