BALTIMORE, December 6, 2021 / PRNewswire / – T. Rowe Prize, a global investment management organization and leader in retirement, published expert tips for year-end financial planning for retirement savings. The coming New Year is an opportunity for all investors to review their financial plans and refocus their financial goals.
Some key considerations include:
- At the end of the year, mutual funds must distribute dividends and net capital gains earned on their holdings during the previous 12 months. Harvesting tax losses is a strategy that investors may consider selling certain positions in a portfolio at a loss, usually to offset short or long term capital gains. Since tax rates on short-term earnings are generally higher, offsetting these earnings could be particularly useful.
- When it comes to asset allocation, investors should keep a long-term perspective with their strategy and make adjustments throughout their time horizon, especially as retirement approaches or when life circumstances change. . When planning for the new year, investors should revisit their asset allocation strategy to ensure that it is still in line with their long-term goals.
- Catch-up contributions are one way to help investors save more in the years leading up to retirement and are a strategy to consider for those nearing retirement as they review their financial plans for the new year. The 401 (k) and IRA catch-up contributions allow people aged 50 and over to benefit from additional tax-efficient savings. Over time, these higher catch-up contribution limits can help investors increase their total retirement savings.
“One of the most common questions investors ask me is about asset allocation,” said Judith Ward, CFP®, senior manager of retirement knowledge at T. Rowe Prize. “Asset allocation is a key part of an investor’s portfolio and the end of the year is the perfect time for investors to review their strategy and ensure that it still makes sense for their future. . ”
“One thing investors should keep in mind when determining their year-end tax approach is to stay focused on the long term,” said Roger Young, CFP®, senior manager of retirement knowledge at T. Rowe Prize. “Making investment decisions purely on tax considerations could lead to costly mistakes that reduce overall returns.”
ABOUT T. WHEEL PRICE
Founded in 1937, T. Rowe Prize (NASDAQ-GS: TROW) is an independent global asset management company with $ 1.67 trillion in assets under management at October 31, 2021. The company is focused on providing excellent investment and retirement services for institutional, intermediary and individual investors. Our strategic investing approach, driven by independent thinking and guided by rigorous research, helps clients feel confident in pursuing their financial goals. For more information visit trowe inconnu, Twitter, Youtube, LinkedIn, Instagram, Where Facebook.
SOURCE T. Rowe Price Group, Inc.