Strategies for Improving Your Financial Health

You go to the doctor for an annual checkup and take steps to improve your physical health. As you get closer to retirement, it’s a good time to take the pulse of your financial health. The following steps can help improve your financial wellness program.

Assess your progress. Use our Retirement Savings Calculator to see if you’re on track to reach your retirement goals or if you need to make some changes — either by saving more or, maybe, working longer.

Make the most of catch-up contributions. In 2020, if you are age 50 or over, you can save more money in tax-advantaged retirement-savings plans — increasing your 457 plan contributions to as much as $26,000 and your IRA contributions to as much as $7,000.

Review your investments. As your retirement date gets closer, start shifting some of your money to more conservative investments not vulnerable to a sudden stock market swing. You don’t want to have to sell in a down market to cover living expenses. You can make these moves on your own, or you can use a target-date fund, which automatically shifts money from stock funds to more conservative investments as your retirement date gets closer. See Choose Your Approach to Investing at www.icmarc.org/invest for more information.

Pay down high-interest debt. The less money you spend on interest, the more you’ll have for your other goals. See Smart Moves for Managing Debt for advice on paying down debt.

Check out our online tools and resources to help you manage your account and save for your future goals.