More people have increased their retirement plan contributions, according to this article on Fortune, citing a survey by Bankrate. However, clients are advised to avoid saving too much money for retirement, as they would fall short on other financial obligations, such as emergency funds, tuition, and mortgage. This could force them to take a loan or withdraw their retirement funds with taxes and penalty.
Seniors are advised to change their lifestyle after they retire, according to this article on personal finance website Motley Fool. They should also ensure that they account for the taxes on distributions from tax-deferred accounts, and even the possibility that a portion of their Social Security benefits could be taxed. Seniors are advised to pay attention to deadlines on their required minimum distributions from tax-deferred accounts.
Although a report shows that median household income increased in all age groups, the increase was insignificant with households aged 65 and above, according to this article from MarketWatch. Alicia H. Munnell, director of the Boston College Center for Retirement Research, writes in this contributed article: "I recognize that the incomes of older people may be higher than shown because they tend to underreport income from retirement plans." She continues: "Nevertheless, older people do not share, to the same extent as younger people, in the gains when the economy performs well."
To protect their retirement portfolio from crooks, retirees should hire a fiduciary to give them financial guidance, according to this article on Kiplinger. Retirees should also entrust their retirement assets to a third-party custodian, and they should also avoid being too zealous about an investment type. They should also remain vigilant and hire a money manager who is Global Investment Performance Standards compliant.
