Twenty years from now you will be more disappointed by the things that you didn’t do than by the ones you did do.”  – H. Jackson Brown Jr

A couple of weeks ago, caravans of kids across America dressed as their favorite characters and canvassed the streets with a singular declaration. After a few hours of labor, they returned home anxious to empty their bags and relish in their spoils. However, they may have found themselves disappointed and left wondering, “Should I have started sooner in order to get more candy?”, “Should I have gone down a few more streets in search of the full-size candy bar?” “What am I going to do with a pencil?” How many of us feel the same way when it comes to planning for retirement? Once a year, we fully commit for a few hours and hope that when it’s time to look in our retirement savings bag, it will be more of a treat.

On November 1st the IRS released their 2019 IRS Retirement Plan Contribution Limits [2] for retirement plans, pensions, and IRAs which included a $500 increase in the amount someone can contribute to their 401(k) in 2019 (this is known as the 402g limit). Individuals can now contribute $19,000 annually into their retirement plan; $25,000 annually if age 50 or older. Naturally, you may be wondering what impact an extra $500 could possibly have on your retirement savings?  Well, assuming a 40-year time horizon and a market return of 6%, an extra $500 a year could amount to $80,000 in additional retirement income[1]. That’s right, for just about $10 per week, you could save a significant amount of additional funds for retirement. You could turn two Starbucks a week into an extra year or more of income for retirement.

Taking advantage of opportunities to save a little more today, can make a big difference in retirement tomorrow.


Important Disclosure Information:

The views and opinions expressed are solely those of AndCo Consulting. This should not be regarded as investment advice or as a recommendation regarding any particular course of action.

This document has been prepared for informational purposes only, and is not intended to provide, and should not be relied upon, for legal or tax advice. Certain information is based on sources and data believed to be reliable, but AndCo cannot guarantee the accuracy, adequacy or completeness of the information. The material provided herein is valid as of the date of posting and not as of any future date and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after such date.

AndCo Consulting is an investment adviser registered with the U.S. Securities and Exchange Commission (“SEC”). Registration as an investment adviser does not constitute an endorsement of the firm by securities regulators nor does it indicate that the adviser has attained a particular level of skill or ability.


1 For illustrative purposes only.  The above represents a strictly hypothetical scenario and should neither be viewed as a guarantee nor construed as investment advice. Actual results could differ materially.

2 Source: IRS Notice 2018-83.