Make the Most of New Legislation and Catch Up on Contributions
IRVINE, CA–(Marketwired – Feb 26, 2015) – Every January, millions of Americans resolve to make and save more money in the New Year. As such, there may be no better time to readjust the financial bar for success than 2015, as new legislation — and a commitment to changes in saving and spending habits — can help people start digging out of debt, shore up on reserves and make sound investments for the future.
"January is always an opportune time to chart a new financial course, particularly before tax time hits," says Darin Gibson, owner and president of Burnham Gibson, a firm with an impeccable reputation for providing individuals and organizations with professional guidance in responsible, long-term risk and wealth management, employee benefits consulting and pension planning.
"This year, Americans have a real opportunity to make changes and take great strides toward strengthening business and individual wealth."
Below are some of Burnham Gibson's top tips for getting finances in order in 2015:
- Contribute, Contribute, Contribute
Effective Jan. 1, 2015, new IRS legislation regarding dollar limitations for pension plans and other retirement-related items allows taxpayers to increase contributions to IRA and 401(k) accounts. Take advantage of new tax laws and set aside additional funds — even if only a few extra dollars a week. Be aware, however, of the new rollover rules that allow taxpayers with multiple IRA accounts only one rollover within a 365-day period, which starts when an IRA owner receives the distribution (www.irs.gov).
- Look at the big picture
Individuals eager to fortify retirement accounts increase their chances of withstanding inflation and fluctuating market changes by investing for the long term rather than trying to time the market, which more often leads to less than favorable results. Though it's tempting to sell investments that have dropped in value, particularly if the money is not immediately needed, hang on. Building wealth is a marathon, not a sprint.
- Save for a rainy day …
…even when the forecast predicts extended sunshine. At one point or another, everyone will face challenges in life from loss or change in jobs to increased medical expenditures. Having an emergency fund with enough to cover at least three months of unemployment can prevent a healthy financial situation from collapsing into chaos and provide peace of mind if a crisis does hit.
- Rebalance and reallocate for retirement
For those that are inching closer to retirement in 2015, it's critical to review the financial portfolio and potentially rebalance risk levels. Individuals who don't review and adjust risk levels may be taking on more risk than they can afford.
- Strength in numbers
Like getting in shape, reaching financial goals often requires accountability. Burnham Gibson always recommends enlisting the help of a trusted friend or financial fitness partner. "Weekly or monthly financial weigh-ins to keep spending and saving on track can really accelerate progress," says Gibson. "A little sage advice and practical strategies for a fresh start will help to fail-proof those New Year's resolutions."
To learn more about Burnham Gibson's financial planning and retirement services, visit www.burnhamgibson.com.
ABOUT BURNHAM GIBSON FINANCIAL GROUP, INC.: Burnham Gibson helps corporate and individual clients accumulate wealth, manage risk and plan for the future. Based in Irvine, Calif., the robust, full-service financial services firm offers an unparalleled complement of best-in-class services to help provide for the full spectrum of clients' financial needs, and the needs of their workforces. Burnham Gibson currently advises on approximately $750 million in assets for corporate and individual clients. In 2010, the company partnered with Burnham Benefits Insurance Services to provide a comprehensive offering of integrated employee benefits solutions. The relationship allows both firms to leverage a larger organizational scale and depth of management, improving the quality and service they can provide for clients. For more information, visit http://www.burnhamgibson.com.