What are Super Catch-up Contributions?
May 12, 2025
Supercharge your savings at ages 60-63
Maximize your savings with a catchup contribution
Catch-up contributions have been available since 2001 and are offered by most 401(k) plans. If you're 50 or older, you can contribute extra savings
to your retirement plan each year. This additional amount, known as a catch-up contribution, helps you grow your retirement savings faster. For example, if the regular annual contribution limit is $23,500, you may be able to contribute an extra $7,500 once you turn 50—bringing your total contribution to $31,000
Introducing the new super catch-up contribution
Starting in 2025, if you are aged 60, 61, 62, or 63, you may be eligible to contribute more to your retirement savings through a new super catch-up provision. This provision temporarily raises the catch-up limit during these four years—and only these four years— providing you with an opportunity to significantly accelerate your retirement savings. There are important age restrictions:
— You must turn 60 on or before December 31 to qualify for the super catch-up.
— You cannot contribute under this rule if you turn 64 at any point during the calendar year. For example, if your 64th birthday is on January 2, you won’t be eligible for the super catch-up that year.
How much can you contribute?
Here’s an example of how the super catch-up increases your limit:
What should you do next?
— Ask your employer: Check if your retirement plan will offer the super catch-up option.
— Plan your contributions: Use this opportunity to increase your savings and get closer to your retirement goals.
— Reach out for support: Contact your plan administrator for more information on how to maximize your contributions.
Need guidance?
Whether you're nearing retirement or working to build your savings, we’re here to help. Contact us today to explore your options and create a plan tailored to your goals. Take charge of your financial future. Maximizing your retirement savings is one step you can take to help build financial security.
Content is for educational purposes only and should not be construed as a solicitation or offer to sell securities or provide investment, tax, or legal advice. Past performance is not indicative of future results. Investing involves risk, including the potential loss of principal. Always consult with a qualified financial advisor before making any investment decisions. Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Advisor Public Disclosure Site https://adviserinfo.sec.gov/firm/summary/123807
The Gasaway Team
Gasaway Investment Advisors
7110 Stadium Dr
Kalamazoo, MI, 49009
(269) 324-0080
info@gasawayinvestments.com
www.gasawayinvestments.com
This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material. ©401(k) Marketing, LLC. All rights reserved. Proprietary and confidential. Do not copy or distribute outside original intent
Our brief April monthly update on the markets and the economy.
Gasaway Investment Advisors is celebrating its 35th anniversary this year.
Our brief March monthly update on the markets and the economy.
Our brief February monthly update on the markets and the economy.
Our brief January monthly update on the markets and the economy.
Our brief December monthly update on the markets and the economy.
Retirement is a significant milestone, and planning for it is crucial to build a comfortable future. At Gasaway Investment Advisors, we believe that everyone deserves the opportunity to retire with confidence. Why is Retirement Planning Important? Retirement planning is essential for several reasons: Financial Security: It helps you ensure that you have enough money to cover your expenses in retirement. Peace of Mind: Knowing that you are financially prepared for retirement can reduce stress and anxiety. Lifestyle Choices: A well-planned retirement allows you to pursue your passions and enjoy your golden years. How Much Do You Need to Retire? The amount of money you need to retire depends on various factors, including your desired lifestyle, expected expenses, and anticipated income sources. A common rule of thumb is that you'll need 70-80% of your pre-retirement income to maintain your lifestyle in retirement. However, this can vary depending on individual circumstances. Key Strategies for Retirement Planning Start Early: The earlier you start saving, the more time your investments have to grow. Maximize Employer Contributions: Take advantage of employer-sponsored retirement plans like 401(k)s and 403(b)s. Diversify Your Investments: Spread your investments across different asset classes to manage risk. Review and Adjust Your Plan Regularly: As your circumstances change, reassess your retirement goals and adjust your investment strategy accordingly. Gasaway Investment Advisors' Approach to Retirement Planning At Gasaway Investment Advisors, we take a personalized approach to retirement planning. We work with clients to assess their financial situation, set realistic goals, and develop a comprehensive retirement plan. Our services include: Retirement Needs Analysis: We analyze your current financial situation, future expenses, and income sources to determine how much you'll need to retire comfortably. Portfolio Management: We manage your retirement investments to help you achieve your long-term goals. Social Security Optimization: We help you maximize your Social Security benefits. Tax Planning: We can strategize with you to try and minimize your tax burden in retirement. Insurance Planning: We can help you create a comprehensive insurance plan based on your needs. Take Control of Your Financial Future By working with a financial advisor, you can gain valuable insights and make informed decisions about your retirement savings. Remember, the key to a successful retirement is to start planning early and stay disciplined. We’d love to have you join our virtual workshop on Retirement Planning on January 21 st at 5:30 pm and learn more! Contact Gasaway Investment Advisors today to schedule a consultation with an advisor and start planning for your future. The Gasaway Team 7110 Stadium Drive Kalamazoo, MI 49009 (269) 324-0080 FAX (269) 324-3834 The views expressed are those of the author as of the date noted, are subject to change based on market and other various conditions. This presentation is not an offer or a solicitation to buy or sell securities. The material discussed is meant to provide general education information only and it is not to be construed as specific investment, tax or legal advice and does not give investment recommendations. Certain risks exist with any type of investment and should be considered carefully before making any investment decisions. Keep in mind that current and historical facts may not be indicative of future results. Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website, https://adviserinfo.sec.gov/firm/summary/123807 .
Investing is often seen as a complex and intimidating process, but it's a crucial step towards achieving long-term financial goals. By investing your money, you can harness the power of compound interest, keep up with inflation, and secure your financial future. The Power of Compound Interest Compound interest is a very powerful tool. In short, compound interest is the interest you earn on top of interest you have already made. Over time, this compounding effect can significantly grow your funds. The earlier you start investing, the more time your money has to grow. Overcoming Inflation Inflation erodes the purchasing power of money over time. By investing in assets that can outpace inflation, you can protect your wealth and maintain your standard of living. Achieving Financial Goals Investing can help you achieve various financial goals, such as: Retirement: Investing in retirement accounts like 401(k)s and IRAs can help you save for a comfortable retirement. Homeownership: Investing in assets like stocks and bonds can help you save for a down payment on a home. Education: Investing in education savings accounts can help you save for your children's college education. Gasaway Investment Advisors' Approach to Investing At Gasaway Investment Advisors, we believe in a personalized approach to investing. We tailor our investment strategies to each client's unique financial goals, risk tolerance, and time horizon. Our investment philosophy is based on a diversified approach, which involves spreading your investments across various asset classes to reduce risk. We typically invest in a mix of equities and bonds. We use investment vehicles like mutual funds and ETFs to help achieve more diversification for the funds invested. Investing for Different Age Groups The optimal investment strategy can vary depending on your age and risk tolerance. Here's a general guideline: 18-45: At this stage, you have a long investment horizon, allowing you to take on more risk. Consider investing heavily in equities, such as stocks and equity mutual funds. Market corrections can be seen as an opportunity to buy more shares as things will be priced cheaper. 45-60: As you approach retirement, it's wise to gradually shift your portfolio towards more conservative investments, such as bonds and fixed-income funds. This can help protect your wealth from market volatility. There should still be equity exposure for growth, but not as much as previously. 60-80: As you enter retirement, you may want to further reduce your risk exposure by increasing your allocation to fixed-income investments. However, it's important to maintain a balanced portfolio to generate income and preserve capital. 80+: At this stage, you may want to prioritize income over growth. Consider investing in fixed-income securities, such as bonds and CDs, which can provide a steady stream of income. It's important to note that these are general guidelines, and your specific investment strategy may vary. Consulting with a financial advisor can help with creating personalized investment recommendations and plans that align with your goals, risk tolerance, and time horizons. We invite you to also attend our virtual workshop on Investments on January 14th at 5:30 pm. By starting to invest early and staying disciplined, you can set yourself up for a secure financial future. The Gasaway Team 7110 Stadium Drive Kalamazoo, MI 49009 (269) 324-0080 FAX (269) 324-3834 The views expressed are those of the author as of the date noted, are subject to change based on market and other various conditions. This presentation is not an offer or a solicitation to buy or sell securities. The material discussed is meant to provide general education information only and it is not to be construed as specific investment, tax or legal advice and does not give investment recommendations. Certain risks exist with any type of investment and should be considered carefully before making any investment decisions. Keep in mind that current and historical facts may not be indicative of future results. Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website, https://adviserinfo.sec.gov/firm/summary/123807.
Debt often carries a negative connotation, and it's easy to see why. Unmanageable debt can lead to stress, financial instability, and even bankruptcy. However, not all debt is created equal. In fact, strategic use of debt can be a powerful tool for achieving financial goals. Good Debt vs. Bad Debt To understand the nuances of debt, it's important to distinguish between good debt and bad debt. Good Debt: This type of debt is used to invest in assets that appreciate over time, such as education, real estate, or a business. Bad Debt: This type of debt is used to finance consumption, such as luxury items or vacations. It can also be assets that depreciate over time, such as car loans. The Role of Debt in Financial Planning While it's ideal to avoid unnecessary debt, there are instances where debt can be a strategic tool. For example, a student loan can provide access to higher education, which can lead to higher earning potential. Similarly, a mortgage can help you own a home, a valuable asset that can appreciate over time and be a place to create everlasting memories. Tips for Managing Debt If you find yourself in debt, here are some tips to help you manage it effectively: Create a Budget: A budget can help you track your income and expenses, identify areas where you can cut back, and allocate funds for debt repayment. Prioritize Your Debts: Consider using the snowball method or opportunity method to prioritize your debts. Negotiate with Creditors: Don't be afraid to negotiate with your creditors. You may be able to lower your interest rate or monthly payment. Avoid Additional Debt: While you're working to pay off your existing debt, avoid taking on new debt. Seek Professional Advice: A financial advisor can provide personalized guidance and help you create a debt repayment plan. Credit Cards: A Double-Edged Sword Credit cards often get a bad rap, but they can be a valuable financial tool when used responsibly. They can help you build credit, earn rewards, and be used to reduce risk when purchasing things online or at the store. However, it's important to use credit cards wisely and avoid falling into debt. To use credit cards responsibly: Pay Your Balance in Full Each Month: This will help you avoid interest charges. Keep Track of Your Spending: Use a budgeting app or spreadsheet to monitor your credit card spending. Pay Your Bills on Time: Late payments can damage your credit score and be costly. By understanding the difference between good and bad debt, and by using debt strategically, you can take control of your finances and achieve your financial goals. Reach out to us to talk with a financial advisor and answer your questions. We’d love to help build you a personalized financial plan and get you started towards your financial goals! You are welcome to join our virtual workshop on Budgeting & Debt on January 7th at 5:30 pm. Check out our events for this year: Events . The Gasaway Team 7110 Stadium Drive Kalamazoo, MI 49009 (269) 324-0080 FAX (269) 324-3834 The views expressed are those of the author as of the date noted, are subject to change based on market and other various conditions. This presentation is not an offer or a solicitation to buy or sell securities. The material discussed is meant to provide general education information only and it is not to be construed as specific investment, tax or legal advice and does not give investment recommendations. Certain risks exist with any type of investment and should be considered carefully before making any investment decisions. Keep in mind that current and historical facts may not be indicative of future results. Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website, https://adviserinfo.sec.gov/firm/summary/123807.
Are you tired of living paycheck to paycheck? Do you dream of financial freedom, but don't know where to start? Budgeting is the cornerstone to taking strides towards these goals. At Gasaway Investment Advisors, we believe that everyone can benefit from creating a budget. Why Budgeting Matters Budgeting isn't just about tracking your spending; it's about taking control of your finances and making informed decisions about your money. A well-crafted budget can help you: Achieve your financial goals: Whether you're saving for a down payment on a house, planning for retirement, or simply building an emergency fund, a budget can help you stay on track. Reduce stress: Knowing where your money is going can alleviate financial anxiety and give you peace of mind. Improve your financial habits: By tracking your spending, you can identify areas where you can cut back and save more. Identifying Needs and Wants: By tracking your spending, you will start to see what things are considered wants, compared to needs. A Simple Budgeting Framework A great way to start budgeting is to follow the 50/30/20 rule: 50% Needs: This includes essential expenses like housing, utilities, groceries, and healthcare. 30% Wants: This covers discretionary spending, such as dining out, entertainment, and shopping. 20% Savings: This is dedicated to saving for future goals, like retirement, a down payment, or a vacation. Gasaway Investment Advisors' Budgeting Tips Our financial advisor, Chase Imberger, CFP®, ChFC®, has years of experience helping clients create and maintain budgets. Here are a few of his top tips: Track Your Spending: Use a budgeting app, spreadsheet, or hand-written notes to track your income and expenses. Set Realistic Goals: Break down your long-term goals into smaller, achievable steps. Be Flexible: Life happens. Don't be afraid to adjust your budget as needed. Review Your Budget Regularly: Schedule regular check-ins to assess your progress and make adjustments. Seek Professional Advice: A financial advisor can provide personalized guidance and help you create a comprehensive financial plan. Ready to Take Control of Your Finances? If you're looking for more personalized information and support, consider attending our Budgeting & Debt Workshop virtually on January 7th at 5:30 pm. During this workshop, we'll provide you with a budgeting worksheet and walk you through the steps of creating a budget that works for you. We also host a variety of workshops throughout the year. To check out our other workshops for the year: Events . Contact us today to learn more about our budgeting and planning services and how we can help you achieve your financial goals. The Gasaway Team 7110 Stadium Drive Kalamazoo, MI 49009 (269) 324-0080 FAX (269) 324-3834 The views expressed are those of the author as of the date noted, are subject to change based on market and other various conditions. This presentation is not an offer or a solicitation to buy or sell securities. The material discussed is meant to provide general education information only and it is not to be construed as specific investment, tax or legal advice and does not give investment recommendations. Certain risks exist with any type of investment and should be considered carefully before making any investment decisions. Keep in mind that current and historical facts may not be indicative of future results. Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website, https://adviserinfo.sec.gov/firm/summary/123807.