Welcome to Retirement Scan, our daily roundup of retirement news your clients may be talking about.
Millennials are advised to consider redefining their concept of retirement and pursue financial independence, as their hurdles are different from those of baby boomers and Gen-Xers, according to this article in MarketWatch. To achieve independence, these clients will need to focus on managing their spending and invest any accrued savings in a tax-efficient accounts. They are also advised to create multiple income streams that are subject to varrying tax treatments.
Clients must weigh their options before rolling their 401(k) funds to an IRA, a Forbes contributor writes. A 401(k) rollover could benefit clients who are not pleased with their investments’ performance, the poor advice they get, the high costs they pay and the limited options they have in the plan, he writes. Moving 401(k) assets to another plan doesn’t make sense if their current plan is less expensive and offers more investment options. “Finding a good, objective financial advisor can help you make better decisions and improve your wealth outcomes,” according to the article.
An HSA offers triple tax benefits and can be a powerful tool to save for health care and retirement when used correctly, according to this article in The Wall Street Journal. Clients who want to take advantage of their HSA and 401(k) should determine whether their employer offers a match in both accounts and contribute the amount. Clients are no longer allowed to fund their HSA once they have signed up for Medicare, according to the article. “Everything about retirement planning says, ‘Start young, be regular and invest.’ That’s what we want people to hear about HSAs,” an expert says.
Clients are not happy with the industry's app offerings, according to a recent J.D. Power survey.
Cash-strapped clients who cannot afford to build their retirement savings are advised to begin saving — even a small percentage of their income, according to this Motley Fool article. They can also free more money by reducing their expenses and saving their tax refunds, salary raises and other windfalls in retirement accounts and brokerage accounts. Clients may also take on a side hustle to boost their income and retirement savings.
