Show Yourself Some Financial Love

During the last two years, we’ve heard a lot about self-care. For good reason. We’ve been going through a global pandemic, with everyone experiencing their own personal hardships. Self-care takes many forms, and one that might not get discussed as much as others is financial wellness: current and future. 

As Valentine’s Day approaches, with heart-shaped candies on store shelves and romance in the air, here are some ways to show love to your future self:

• Find extra savings. With the pandemic turning many people’s routines upside down, now may be a good time to rethink your spending habits. Try writing down the things you spend money on. By keeping track of where your money goes, you may find opportunities to save a little each week, which can have a positive impact down the road.
• Think ahead. You may have a lot of expenses to meet in the here and now—rent or a mortgage, groceries, car payments. Retirement may seem far off. But some of those expenses may still be around when you retire, so building up a nest egg to draw from to help you meet your expenses in retirement can give you peace of mind. 
• Pay yourself first. One of the best ways to make sure you’re saving enough for retirement is to make regular contributions to your employer-sponsored retirement plan. They’re taken automatically from your paycheck, so you don’t ever see that amount in your bank account and feel tempted to spend it elsewhere. 
• Take advantage of employer match. If your employer matches part or all of your contributions, try to save as much as you can to reach the maximum match. It’s essentially free money and not included in taxable income until you take a distribution.*
• If you get a raise, increase your contribution. If your paycheck grows, split that raise between your current and future selves. Put some of it into contributions to your retirement savings, and keep the rest for current needs. 
• Make catch-up contributions after 50. Once you’re 50, you can begin contributing more each year to company and individual retirement plans. For 2022, you can contribute a maximum of $27,000 (including catch-up contributions) to your employer-sponsored plan. The IRA maximum contribution limit remains at $7,000 (including catch-up contribution) total between traditional and Roth IRA accounts.
• Talk to us. We’re here to help. Your Mutual of America representative can answer questions about saving for retirement. 

*Generally, withdrawals of the tax-deferred contributions and any investment earnings are subject to income tax at your ordinary income tax rate at the time of withdrawal. Additional tax may apply if distributions are made prior to age 59½, your death or disability, or separation from service after reaching age 55, or not as part of a series of substantially equal periodic payments.