WEALTH MANAGEMENT
Retirement Plan Services Some trust products and IRA contributions/ balances are not a deposit, not FDIC insured by any federal government agency, not guaranteed by the bank and may go down in value.
What can I do if I’m worried about market volatility?
Since market volatility itself is normal; the recent volatility should not itself warrant a change in your long-term retirement strategy. The right thing to do may be as simple as recalibrating your expectations, or making a conscious effort to disconnect from worrying market news. However, if volatility has caused you excess stress (such as impacting your sleep), consider reaching out to initiate a discussion. Start by considering your overall asset allocation. Then, ask yourself the following questions: • (For those near retirement only) Do I have enough cash and investment in fixed income to account for my spending for the next 3-5 years? • Does my portfolio match my willingness, need, and ability to take risk for the long term? • Do I fully understand the potential range of outcomes when investing in stocks? If the answer to any of these questions is “no,” you may want to make a change to your investments or meet with one of Hills Bank’s Retirement Plan Officers to help you decide. If you need more information about the investment choices or your plan’s rules, we can help with that, too. (319) 338-1522.
Are You On Track for Retirement?
Aim to Have Saved(x) Times Your Salary
10 12 14
12x
10x
8x
2 4 6 8
6x
4x
2x
0.5x 1x
0
30 35 40 45 50 Age
55 60 65
Source: T. Rowe Price
With proper planning, you can get there. Here’s our checklist to make sure your 401(k) retirement plan serves your financial needs. 401(k) Retirement Planning Checklist • Increase my contribution rate by 1% each year • Check on my investments and make adjustments for the long-term • Update my beneficiary designation • Reach out to Hills Bank Retirement Plan Services if I have any questions: (319) 338-1522
Financial Planning Hills Bank Free financial planning services available to you as a participant in the Retirement Plan. Each Hills Bank Officer below has earned CERTIFIED FINANCIAL PLANNER™ certification.
Todd Joslin, CFP®: First VP, Wealth Management Officer 3905 Blairs Ferry Rd NE Cedar Rapids, IA 52402 Office: (319) 447-8426 Todd_Joslin@hillsbank.com
Chris Moen, CFP®: VP, Wealth Management Officer 590 W Forevergreen Rd North Liberty, IA 52317 Office: (319) 665-5749 Chris_Moen@hillsbank.com
Yu Yu, CFP®: First VP, Wealth Management Officer 1401 S Gilbert St Iowa City, IA 52240
Office: (319) 665-5706 Yu_Yu@hillsbank.com
What’s New?
New Limits—In 2023, the IRS limit for employee contributions to a 401(k) Plan is $22,500.
Additional “Catch-Up” Contribution Opportunity for plan participants Age 50 or better is $7,500.
New RMD Begin Dates—SECURE Act 2.0 extended the Required Minimum Distribution (RMD) Age to 73 and will ultimately extend the RMD Age to 75 for anyone born after 1960. New Elimination of Iowa Retirement Income Tax— starting in 2023, distributions from retirement plans like 401(k) plans for individuals age 55 + or disabled, no longer be taxable at the state level. (Remains federally taxable)
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