Our daily roundup of retirement news your clients may be thinking about.
-
Millennials are using TDFs more than others. Digital firms are paying attention.
December 13 -
Contract work, consulting or smaller part-time jobs can help clients reduce withdrawals early in their retirement years. But have advisors kept up with the complexities of these strategies?
November 20 -
As college debt rises, borrowers want different perks from their employers.
September 20
Clients who use a Roth IRA will face no tax liability or penalty when withdrawing the original principal contributions ahead of retirement to cover education costs, according to an article in The Wall Street Journal. However, unlike a 529 savings plan, investment gains will still be subject to income taxes, even if they’re withdrawn to pay for qualified higher-education expenses.
Clients may not want to name minors and individuals with special needs as beneficiaries, according to a Kiplinger article. Children under 18 will need a court-appointed person to claim and manage assets until they come of age, which can be costly. Individuals with special needs may become disqualified from valuable government benefits if they receive too many assets form inheritance. In such instances, advisors may want to recommend that clients instead create a trust to be named as the beneficiary.
Can’t stop, won’t stop. That’s the mantra of some boomers who have no interest in retirement.
Many people think working past their retirement age will improve financial prospects, but seniors may be forced to leave the work place ahead of time, according to this Forbes article. Clients who are planning to work longer should understand the reason they want to stay longer in the labor force and explore creative ways to remain employed and stay skillful, writes an expert. "The fact is, if you don’t take critical steps to improve the odds of extending your earning years, you don’t have a plan — all you have is hope."
About 44% of clients think Medicare will cover most of their medical expenses after they retire, according to this Motley Fool article. However, the program doesn’t cover considerable medical costs, including dental services, hearing aid and long-term care. Clients should consider saving for these healthcare services by getting a Medigap policy and saving in 401(k)s, IRAs and HSAs.
