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1021223-00006-00
David P. McCabe,
WMCP®, ChFC®, CLU®
Financial Planner
Nathaniel D. High, RICP®
Financial Planner
Nicholas J. Over, CFP®
Financial Planner
Sara E. Martin
Client Relations Manager
Jennifer A. McCabe
Client Relations Specialist
jennifer.mccabe@prudential.com
Centuria Financial Group
2333 Baltimore Blvd Suite B
Finksburg, MD 21048
Phone: 443-952-7232
January/February 2025
Get Retirement Planning Right
Procrastination is just one of many ways we can derail or delay saving for retirement. Here are some mistakes to avoid.
Starting Late
Check out the compound interest calculator at www.investor.gov to figure out how time can work to your advantage. If you contribute $800 per month that gains 5% annually, compounded daily, you will accumulate over $1.2 million after 40 years. Delay contributions 20 years, double the monthly contribution to $1,600 with the same terms over the next 20 years, and you'll have about $660,000*. Time and compounding make a huge difference, so save early and regularly.Investing Inappropriately
Time to recover may help ease the impact of market volatility when you're young. If you're retired, you may want to invest for enough growth to match inflation, but more conservatively than when you were younger.Not Maximizing Your Employer's 401(k) Match
Don't leave money on the table. If your employer matches some of your contributions, consider putting in at least that amount.Going Without a Retirement Account
If you don't have a retirement plan through work, consider opening and contributing to an individual IRA. You have until the tax filing deadline in April to have it count for 2024.Taking Loans for Vacations
Don't tap your retirement funds for a frivolous expense, which puts you behind the eight ball for retirement and costs you interest, too. See the earlier interest calculator example.Taking Plan Loans for College Expenses
This isn't a frivolous expense, but you and your child may be able to borrow or save for it in more appropriate ways. You can't borrow for retirement.Not Taking Advantage of an HSA
Health Savings Accounts are triple tax-free. This means tax-deferred contributions, tax-deferred earnings, and tax-free distributions for qualified health care expenses. After age 65, you can take withdrawals for any reason penalty-free — just pay income tax on the unqualified amount.Making the Ultimate Mistake
You haven't yet created a long-term savings strategy? Work with a financial professional to create one and fine-tune it as your situation changes.*This is a hypethethical example and is not representative of any investment strategies. Actual results may vary.
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Centuria Financial Group is not affiliated with Prudential Financial. Centuria Financial Group sells insurance products of Prudential Financial's affiliated insurance companies in addition to products of non-affiliated insurance companies. Centuria Financial Group is authorized to sell and service certain insurance products of Prudential Financial companies as well as use this material. Centuria Financial Group and its representatives do not give tax or legal advice. Please consult with your own advisors regarding your particular situation. Offering financial planning and investment advisory services and programs through Pruco Securities, LLC (Pruco), under the marketing name Prudential Financial Planning Services (PFPS), pursuant to a separate client agreement. Offering insurance and securities products and services as a registered representative of Pruco, and an agent of issuing insurance companies. 1-800-778-2255. Sara E. Martin and Jennifer McCabe are employed by David McCabe and not The Prudential Insurance Company of America or its subsidiaries.
This newsletter is general educational information provided by a Prudential Financial Professional and is not intended to market or sell any specific products and services, but rather provide general information about the subject matter covered only.
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