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According to a Bankrate survey from 2023, 56% of Americans feel behind on retirement savings, while over 20% have not put a dime towards savings for retirement in over a year. As inflation remains and wages remain relatively stagnant, Americans are struggling to keep up with saving. Mitlin Financial Founder Lawrence Sprung and Advisors Capital Management Senior VP Cary Carbonaro join Wealth! to give insight into the best ways to maximize retirement savings and learn new financial planning strategies.
Carbonaro states that workers need to maximize current retirement accounts offered by employers: “I always say step one is to max out your current retirement account at work. If you don’t have one, you can always set one up or you can do an IRA, but no matter what, you have to set it up. It has to be on autopilot because that’s the way most people save. If you’re given a choice, you won’t save it. It’s called behavioral finance. So you have to get it in and get it often. And that’s the way to get you to your goal. ”
Sprung explains the use of Tax loss Harvesting as a way to save: “Tax loss harvesting is taking a look at investments that you may have losses in and taking those losses and using them to offset gains. Because at the end of the day, it’s all about how much money you’re able to keep, not after selling the investment, but after you pay the tax man. And by selling some losses to offset those gains, you end up keeping more of your hard-earned money and the growth you have accumulated within those accounts that are outside of retirement accounts. ”
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