As the seasons change, it’s the perfect time to refresh your financial strategy and ensure you’re on track for long-term success.
Here are three key steps to help you maximize your investments and keep your accounts up to date.
01 THE POWER OF NOW
One of the most common regrets we hear from investors—at all stages of life—is wishing they had started saving earlier. The good news? It’s never too late (or too early) to begin investing.
Long-Term Compounding Can Be Meaningful
Think of it as a rolling snowball—compounding generates earnings on your reinvested earnings, and the longer your money stays invested, the greater the impact. However, pulling out of the market during downturns can disrupt this powerful effect. Market fluctuations are inevitable and market declines can be unsettling, reacting to short-term volatility can hinder your ability to build wealth over time. Staying invested through ups and downs allows you to take full advantage of compounding and long-term growth opportunities.
Our team is here to help you prioritize your long-term financial goals and fine-tune your investment strategy. Whether you’re launching your career, saving for a child’s education, or preparing for retirement, we’re ready to guide you every step of the way.
02 MAKE THE MOST OF YOUR IRA
IRAs are one of the most powerful retirement savings tools available, offering tax advantages that help your investments grow over time. Whether you’re looking to supplement an employer-sponsored retirement plan or start saving independently, an IRA can provide significant long-term benefits.
- Even if you contribute to a 401(k) at work, an IRA can provide additional advantages.
- The two main types of IRAs—Traditional and Roth—both offer tax-sheltered growth.
- Practically anyone with taxable income can contribute to a Traditional IRA, while eligibility for a Roth IRA depends on income levels.
However, there are important differences between these two IRAs with respect to eligibility and taxation. If you’re unsure which IRA is right for you, our team is happy to help you navigate the options.
03 REVIEW YOUR ACCOUNT BENEFICIARIES
Did you know that your beneficiary designations supersede what is written in any legal document such as a trust or will? Therefore, we recommend that you review, and update as necessary, both your primary and contingent account beneficiaries annually. If your situation has changed, there may be unintended consequences from your beneficiary designations.
At Fenimore, we’re committed to helping you invest with confidence. Whether you’re setting new goals, making the most of tax-advantaged accounts, or ensuring your estate plans align with your wishes, we’re here to support you on your financial journey.
Let’s work together to make this season a fresh start for your finances. Contact us today to get started! Call us at (866) 944-3421 or stop by the Cobleskill or Albany, NY offices.