Financial Tips for August: Optimize Your Retirement Savings

BFGWM Team
Aug 1
2 min read

Updated: 1 day ago

Retirement planning advice

August is the perfect time to refocus on one of the most critical aspects of your financial future: your retirement. Whether you’re just starting to save or fine-tuning an established strategy, small actions now can lead to greater financial freedom later. This month, take proactive steps to optimize your retirement savings with these three tips:

1. Increase Your 401(k) Contributions

If you’re enrolled in a 401(k) through your employer, consider increasing your contribution rate, even by just 1 to 2%. Over time, this small adjustment can significantly boost your retirement savings, especially if you're receiving a company match.

Why it matters:

Contributions reduce your taxable income for the year.
Matching contributions are essentially “free money.”
More time in the market means more opportunity for compound growth.

Action Tip: Log into your retirement plan dashboard or contact your HR department to check your current contribution rate. If you’re behind on your savings goals, use this time to catch up.

2. Open or Contribute to an IRA

Whether it’s a Traditional or Roth IRA, these individual accounts offer valuable ways to grow your retirement savings beyond an employer-sponsored plan.

IRA Benefits:

Traditional IRAs may provide tax-deductible contributions, depending on your income.
Roth IRAs offer tax-free growth and tax-free withdrawals in retirement.
For 2025, you can contribute up to $7,000 (or $8,000 if you’re age 50 or older).

Action Tip: Haven’t opened an IRA yet? August is a great time to set one up. If you already have one, consider setting up recurring monthly contributions to reach your maximum by year-end.

3. Reassess Your Long-Term Retirement Strategy

As you move through the year, take time to step back and evaluate your broader retirement plan. Life changes, career shifts, or market movements may require updates to your approach.

Consider:

Are you still on track to meet your retirement goals?
Has your income, spending, or risk tolerance changed?
Are your investment allocations aligned with your retirement timeline?

Action Tip: Schedule a mid-year check-in with your financial advisor to reassess your retirement projections, investment strategy, and any adjustments you may need to stay on track.

Optimizing your retirement strategy is about consistency, clarity, and the willingness to adjust when needed. By taking a few intentional steps this (like increasing your 401(k) contributions, funding your IRA, and revisiting your plan) you’ll be better prepared for a secure financial future.

Need help aligning your retirement strategy with your long-term goals? Connect with a BFG Wealth Management advisor today!

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Note: This information is for educational purposes and should not be considered financial advice. Consult with a financial advisor for personalized guidance.

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