T. Rowe Price Publishes Year-End Tips For Retirement Savers
Some key considerations include:
- At the end of the year, mutual funds must distribute any dividends and net capital gains earned on their holdings over the prior 12 months. Tax-loss harvesting is one strategy that investors can consider, which involves selling certain positions in a portfolio at a loss, usually in order to offset either short-term or long-term capital gains. Since tax rates on short-term gains are generally higher, offsetting those gains could be particularly valuable.
- When it comes to asset allocation, investors should keep a long-term perspective with their strategy and make adjustments throughout their horizon, particularly as they approach retirement or when life circumstances change. While planning for the new year, investors should revisit their asset allocation strategy to ensure it is still on track with their long-term goals.
- Catch-up contributions are a way to help investors save more in the years leading up to retirement and are a strategy to consider for those approaching retirement as they revisit their financial plans for the new year. Catch-up 401(k) and IRA contributions allow people 50 years and older to benefit from additional tax-advantaged savings. Over time, these higher catch-up contribution limits can help investors increase their total retirement savings.
"One of the most common questions I get from investors is about asset allocation," said
"One thing for investors to keep in mind as they determine their year-end tax approach is to stay focused on the long-term," said
Founded in 1937,
Monique Bosco, 410-345-5740, Monique.Bosco@troweprice.com; Laura Parsons, 443-472-2281, Laura.Parsons@troweprice.com