REINVENTING Your Planning Newsletter RETIREMENT Third Quarter 2021

ANNUAL MAINTENANCE Perform this five-point inspection to help keep your retirement plan’s motor running smoothly

Just like with a car, it’s a good idea to to see if it aligns with your current perform some annual maintenance on strategy. Keep in mind, you may also your retirement plan. Here’s a five-point want to rebalance to a more aggressive inspection guide to help you continue or conservative allocation should your to get good mileage out of your plan tolerance for risk change. and ensure it stays reliable on your trip to retirement. 4. Consolidate Your Accounts You may have a 401(k) from a past job that 1. Review Your Retirement you no longer contribute to. Rolling over Saving Goals on making sure you contribute enough to the funds from one or more other accounts It’s challenging to predict your retirement receive your full employer match if your into one retirement account can help make needs, particularly if you’re in your 20s plan offers one — otherwise, you’re missing your financial life more manageable, keep or 30s. But financial planners generally out on free money. Then, aim to increase your savings organized and potentially recommend replacing about 75% of your contribution by at least 1%–2% each reduce your account management fees. preretirement income. Even if your year, working up to saving 10%–15% of your Just make sure you follow transfer or retirement is decades away, you should pretax income each year. Finally, make rollover rules so you don’t get hit with use a retirement calculator at least once sure to review current retirement plan an unexpected penalty or tax bill. a year to estimate whether you’re on track contribution limits ($19,500 in 2021, plus to reach your goals. Your recordkeeper an additional $6,500 catch-up contribution 5. Review or Name Your Beneficiaries will likely have retirement calculators if you’re age 50 or older). While you might When you first signed up for your and other planning tools on their not have been able to contribute the retirement plan, you may have skipped website. You can also check out the maximum amount in the past, you may this step. Or, you may want to make interactive retirement calculator at have more to save now. adjustments if your family status has aceyourretirement.org, which includes a changed. Make sure your designated digital “retirement coach” that can help 3. Rebalance Your beneficiaries align with your will, if you walk you through some personalized Portfolio have one. Also, please note that when it retirement plan action steps that may Over time, market changes can lead to comes to employee-sponsored retirement help you achieve your retirement goals. shifts in your portfolio’s allocation. plans, the law requires written consent For example, you may have started with a from your spouse if you decide to name 2. Increase Your Retirement Plan 75/25 -fund-to--fund split, but anyone besides them as the beneficiary. Contribution changes in the market caused to While the ultimate goal is to max out your now account for 85% of your portfolio’s retirement account contributions, don’t value. That’s why it’s important to stress if you aren’t there yet. Focus first periodically check your asset allocation 2 REINVENTING RETIREMENT | THIRD QUARTER 2021

CATCHING A PHISH Tips to help you identify common phishing scams and take steps to avoid trouble

If you spend any time online, you’ve Common Phone Scams probably been the target of a phishing Phone scams come in many forms. Some attack. This is when a scammer pretends seem friendly, while others try and use to be from a reputable company to get you intimidation. Either way, the goal is to get to reveal personal information they can use your personal information and money. Here for their own gain. They do this through are some common phone scams: a number of communication mediums, including emails, website pop-ups, text Fix your . Give them some money messages and even mobile apps. Here and they promise to “fix” or “remove” are some tips to help you spot the most your . common phishing scams and take the Please give now. You need to give money Do I know you? Ask this simple question necessary steps to avoid trouble. today to help these people in need. before responding to a message. First check to see if you recognize the sender’s Common Email Phishing Scams Extended car warranties. Almost everyone name and email address. If you don’t do with a cell phone has had one of these Email phishing scams take on the or haven’t requested information robocalls. The scammers access public appearance of a legitimate email. They may from a particular company, don’t click on purchase records to try and sell you even appear to be from a company you’re any links or take any surveys. overpriced or worthless car warranties. familiar with (such as Amazon, Costco or Do you know me? Avoid communications Netflix), to take advantage of your trust You’ve Been Scammed. Now What? that lack personalization. “Dear valued and gain personal or financial information. customer” is your clue to ignore it. Here are some common email scams: If you think you’ve received a suspicious communication, here are some questions Is this a legitimate link? Before clicking on Foreign lottery. Congratulations! You just to ask yourself and defeat the scam before a link, hover over it with your mouse to see won a big prize! Unfortunately, it’s often it even gets started: if the URL address looks legitimate. in a foreign country, and you must pay a small amount upfront to receive the Does it pass the eye test? Phishing Am I on the web page I think I’m on? larger reward. emails often contain a number of spelling, Before logging into an online account, punctuation and grammar errors. In make sure the web address is correct. Survey says. You get a request to take addition, the email may contain an Phishers often counterfeit legitimate a survey for a social issue you may care embedded logo of a well-known company websites, hoping to trick you into entering about. When you click the link, you get (to try to make it look “official”) that looks your login details. infected with malware. a bit fuzzy or blurry. If you read through it Is it too good to be true? Avoid “free” on it. You receive an email saying and spot any of these things, it’s a pretty offers or deals that sound too good to there is something wrong with your bank, good bet that it’s a scam email. be true. Netflix or PayPal account “that needs Is this asking for too much information? your attention.” You’re then directed to Is my software active? Always Be on the alert if anyone seems to be a fake site where you are instructed to use comprehensive security software to asking for sensitive information, like your login so they can steal your user name and protect your devices and information Social Security or bank account number, password for the actual site. from malware and other threats that even if you are talking to a company or might result from a phishing scam. bank you do business with.

Sources: PC Magazine; National Cybersecurity Alliance (www.staysafeonline.org); Kmotion Research. REINVENTING RETIREMENT | THIRD QUARTER 2021 3

MONEY WELL SPENT A fresh approach to spending can help put some sizzle in your retirement savings

Despite all the budgeting and cash flow you should put at least 20% tracking apps available, many people still of your income toward savings struggle to manage their spending habits goals