Maximize Your Savings Strategy

Maximize Your Savings Strategy

As we approach the end of the year, now’s the perfect time to evaluate your savings strategy. Whether you’ve been consistently contributing or still have room to make a few final deposits, year-end is an ideal time to maximize your accounts. It’s also a great opportunity to set a solid plan for the upcoming year.

For 2024, consider ramping up your contributions to fully maximize tax-advantaged accounts before the calendar year closes. For example, many 401(k) plans allow you to increase contributions to a high percentage in December to shovel more into your retirement savings. This can be a strategic move if you haven’t yet hit the annual limit. There are accounts like HSAs and IRAs that give you the option to contribute until the tax filing deadline, providing a bit of extra flexibility. But if you’re aiming to get ahead on next year’s savings goals, contributing any extra funds in your checking account now will give you a strong start in 2025.

Starting in 2025, retirement contribution limits are increasing, allowing many people to save even more on a tax-deferred basis:

  • 401(k) Plan Contributions: The limit rises to $23,500, with an additional catch-up of $7,500 for those born before 1976. For individuals ages 60-63, SECURE 2.0 introduces an even higher catch-up amount of $11,250.
  • HSAs: The contribution limits for HSAs increase in 2025, allowing you to set aside up to $4,150 for self-only coverage and $8,300 for family coverage. For individuals 55 and older, a catch-up contribution of $1,000 is still allowed. HSAs provide triple tax benefits: contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are also tax-free. HSA funds can be invested in equities. HSA funds that are not needed for qualified medical expenses can be withdrawn after age 65, although you will pay ordinary income taxes on it, similar to a traditional IRA withdrawal.
  • Traditional and Roth IRAs: The contribution cap remains $7,000, with a $1,000 catch-up for those over 50. Roth IRA income limits are rising as well, phasing out at $236,000-$246,000 for couples and $150,000-$165,000 for singles and heads of household.

One of the best ways to maximize your retirement savings is through automatic monthly contributions. By setting aside a set amount each month, you’re essentially “paying your future self” before covering other expenses. This disciplined, automatic approach smooths out market fluctuations and consistently builds toward your long-term goals through dollar-cost averaging.

Layering your savings across various types of accounts can provide you with the best return and tax advantages. Here’s a priority list to consider:

  1. Max Out Employer 401(k) Matching: If your employer offers a match, contribute enough to capture the full amount. This “free” money is one of the best returns you can get.
  2. Investable Savings Accounts: Accounts like Health Savings Accounts (HSAs) and 529 education savings plans offer tax benefits and flexibility, making them powerful tools for a balanced financial strategy.
  3. Non-matched 401(k) and IRA Savings: Go back to contribute the rest needed to reach the maximum for your 401(k). Additionally, make your annual Traditional IRA or Roth IRA contributions if your income is within the phase-out.
  4. Brokerage (Taxable) Savings: Brokerage accounts provide ultimate flexibility for short-to-medium term financial needs as well as retirement investment savings. Though taxable, they’re an excellent addition for funding goals outside of retirement.

As the year wraps up, take a moment to evaluate your contributions, assess the progress you’ve made, and make any needed adjustments for an even stronger financial future. Even small tweaks to your contribution strategy now can lead to significant gains down the road. Remember this line from Warren Buffett: “Do not save what is left after spending, but spend what is left after saving.” By putting your future first, you’re setting yourself up for financial security and freedom. Happy saving!

 

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Nick Silikov

Director of Communications
Nick brings over 15 years of experience working with leading companies in the trading and financial technology space. As Director of Communications at Inside Edge Capital, he helps clients navigate the firm’s services, while also managing and maintaining its suite of web properties.

Kyle Wasson, CFP®​

COO

As Chief Operating Officer at Inside Edge Capital, Kyle guides clients toward their financial aspirations with expertise and care. With over a decade of experience as a Certified Financial Planner (CFP®), wealth advisor, entrepreneur, and investor, he designs personalized strategies to grow wealth, plan for retirement, or build a lasting legacy tailored to each client’s vision.

Kyle holds degrees in economics and financial planning from Texas Tech University, blending analytical depth with practical insight.

He lives in his hometown of Austin, TX with his wife, Kat, and their many pets. He enjoys staying active with community, following markets, playing golf and basketball, tending to his garden and chickens, and traveling.

Todd Gordon

Founder, CIO, CNBC Contributor

Todd Gordon is the Co-Founder and Director of Investments at Inside Edge Capital. He lives in Saratoga Springs, NY with wife Tricia, twin boys Jake and Brody, and their youngest Eden Rose.

He spent his youth leading an active lifestyle in upstate NY playing many sports, but excelling in alpine ski racing. His senior year he was one of the top ranked skiers in New York state. Todd’s love for the markets began at an early age. The day he turned 18 he was finally able to open his first E-trade account during the tech bubble of the late 90’s. Reading, studying, and following gurus on the internet he attempted to day trade via an AOL dial-up modem. It didn’t go so well, but he was hooked. Ask his parents about the first phone bill they received (they didn’t realize it was a long distance phone call to be connected to the internet).

Todd began college at St. Lawrence University in far upstate NY where he pursued a degree in economics, competed on their division-I alpine ski racing team, and continued to trade and study the markets. After a while Todd came to two realizations; first he was never going to be competitive at that elite level against future olympians, and second, he knew exactly where his career was headed, he was going to be a trader.

Opting to be financially prudent and reduce student loan burden, Todd transferred away from the expensive private school to the more reasonably priced U at Albany to continue studying economics. Todd will tell you he has not used his economics degree one single day in his 21-year career in the markets (he recommends psychology and history for aspiring traders / investors).

Following college he took his first job as a professional trader in San Diego, CA and eventually made his way back east to Forex.com / Gain Capital on Wall St in New York working as a Sr Technical Analyst and trader for the parent company’s hedge fund. The move was very timely as just a few years into his new role the global financial crisis started in 2007.

Todd made a name for himself on social media and his initial interviews on BNN and CNBC by successfully trading and navigating the extreme market volatility with full transparency and devotion to his readers.

With momentum behind him in 2011 Todd left the corporate world and ventured on his own to start his own research and trading advisory business named TradingAnalysis.com. TradingAnalysis still operates today led by an incredible team he’s built over the last decade that continues to serve active trading clients around the world.

Todd’s dream was to evolve from the education, research, and trading advisory model to a more intimate client-facing model of wealth management. In 2018, recognizing that the RIA / wealth management model was booming and headed online, Todd begged his beautiful wife Tricia to allow him to move the family away from New Jersey back to Saratoga Springs.

Todd has been a CNBC contributor since 2010 and continues to provide actionable, insightful, and light-hearted commentary for CNBC. He is known for blending technical and fundamental analysis to interpret the ever-changing market landscape to produce specific trading and investment ideas for CNBC viewers and his clients. He has appeared on various shows such as CNBC Fast Money Halftime show, Fast Money, Power Lunch, Squawk Alley, Squawk on the Street, Money in Motion, and the CNBC Stock Draft. He’s also appeared on Squawk Box multiple times, and also had the opportunity to sit in for Andrew Ross Sorkin as the host to conduct interviews.

Todd considers himself extremely lucky to have spent the past 2-decades in the financial markets and financial media doing a job he loves very much. He is very excited to enjoy the same success and satisfaction in the next evolution of his career with wealth management in the coming decades.