Our daily roundup of retirement news your clients may be thinking about.
Seniors should to have built an emergency fund and socked away at least 10 times their salary in their retirement accounts by the time they retire to secure their golden years, according to this article on Motley Fool. They should have also paid off their mortgage and credit card debt and carry long-term care insurance in retirement. Knowing Social Security rules can also help them make claiming decisions that will maximize their benefits.
This article on Kiplinger includes Ocean City, N.J., Carlsbad, Calif., Hilo, Hawaii, Annapolis, Md., and Kingston, R.I., among the most expensive places to live in for retirees. The cost of living in these places is at least 10% above the national average, but these locations have advantages that can write off the high cost.
Financial experts say that many people have the misconception that filing for Social Security early or at their retirement age is the right decision to make, according to this article on CNBC. They also make the mistake of thinking that their marital status will not matter and they can reach the right decision all by themselves. Seniors can also reverse the decision within twelve months since they started collecting their benefits. They should also not assume that their Social Security record is always accurate.
Seniors can promote their well-being in retirement by pursuing "high-grade activities" that they are passionate about, writes a Forbes contributor. However, they should consider different types of activities to ensure they will get physical, social and mental benefits that they need, explains the expert. "The point is, aim for balance and have different activities because they can produce different benefits. Your daily or weekly routine should include a mix of the social and solo, as well as the physical and mental."
Clients will be better off paying off their "bad debt" as soon as they can, as it could reduce their retirement savings and lead to financial woes in the future, writes an expert on TheStreet. One way to pay off debt is to use funds from their savings, checking or brokerage account, explains the expert. "These accounts are not taxed, and there are no other penalties associated with withdrawing funds from them. They also protect retirees from having to dip into their retirement accounts too early."
