2023 Newsletter — Volume 4

RetireOnTarget^® Newsletter

Learn more about how being charitable can help you achieve your retirement goals and how knowing your money habits will help you hit savings goals. Plus, see the difference just a 1% additional contribution can impact your retirement savings goals.

Make charitable giving part of your financial plan

It’s safe to assume that we all want to leave the world a better place than it was when we were born. For many, that means giving to charities. If you feel convicted to support a cause, it’s wise to make giving a part of your financial plan.

If planning is done early enough, charitable gifts can be set up in a way that they provide those making them with not only tax benefits but income as well. Charitable giving needs to be part of your big-picture financial plan if you want it to have the most benefit.

With a smart strategy for charitable giving, you can align your long-term financial interests with your drive to do good in the world. Here are four areas of charitable giving to consider:

How charitable donations are a smart financial move
Research charities as well as your strategies
Planning with a goal in mind
Options outside of outright contributions

Learn more details on charitable giving

Start the new year off right

The new year is a perfect time to reflect on your spending and money habits. Just a few small tweaks can make the difference between an early retirement, your ability to switch careers, travel the world or otherwise achieve the financial freedom you desire. Here are some actions to consider to start your new year off right!

Set financial goals

Setting goals can help you clarify where you are going in the future and provide clear direction. Remember to look at both short-term goals (accomplish in the next 12 months) and long-term goals you are working to achieve. Lastly, be sure to review your finances and determine how much you need to save over a particular timeframe (year, quarter, month, or pay period) so you have concrete numbers to reach.

Analyze your spending

It’s often not the major purchases that can derail your journey toward financial freedom…it’s usually the smaller, habitual transactions. The start to a new year is a great time to track your spending over the month of January to look for patterns to break to free up money to save towards your goals.

Realistic budgets

For your budget to be effective, try to make it realistic so it can help guide your behavior without stressing you out. By first tracking your spending, you can see where your money is going and then allocate a reasonable amount of money toward each budget category you create.

If you don’t already have a working budget, one basic plan you might use is the 50/30/20 distribution:

50% on needs
30% on debt
20% for discretionary expenses¹

Again, the new year can be a fresh start to reflect and make changes to your spending and money habits!

Learn more

Ring in the new year with your retirement goals on target

As we kick off 2024, take time to review your retirement strategy. The new year brings financial considerations that may benefit you now as well as in the future. Below are two items to consider with your retirement goals:

Increase contributions — a small increase can go a long way

Making a small increase of 1% or 2% to your contributions to your retirement savings can make a difference when it comes time to retire.