Our daily roundup of retirement news your clients may be thinking about.

9 signs clients aren’t saving enough for retirement
On average, Americans spend at least 20 years in retirement, so it's crucial that they have saved enough to support their living costs through the golden years, according to this article on CBS Moneywatch. You will know that clients do not have sufficient savings if they haven't taken the initial steps to build their nest egg or they scramble to pay out-of-pocket medical expenses. Having credit card debt, or not being able to live for several months from their savings are other signs they have not saved enough. See the other red flags in this article. 
--CBS Moneywatch

Can clients put their required minimum distributions into Roth IRA?
Retirees are not allowed to convert their required minimum distribution from their traditional IRA to a Roth account, according to this article on Time Money. Converting an RMD will be taken as an excess contribution and trigger a 6% penalty for every year the amount stays in the account. However, clients can make the conversion on the remaining amount after they have taken the RMD and pay the applicable taxes. "You just have to satisfy the RMD requirement before you do a Roth conversion," says an expert. --Time Money

Some investors can’t wait for the Fed to raise rates
Investors who are approaching retirement are hoping that the Federal Reserve will increase interest rates as they intend to move their assets from riskier stocks to bonds and other more stable investments, according to this article in The Wall Street Journal. However, there are hardly high-rated bonds that provide a substantial return. "CDs and Treasurys, we don't even look at those anymore because the rates are so low they're ridiculous," a pre-retiree complains.  --The Wall Street Journal

How to know if a variable annuity is right for clients
Many experts recommend variable annuities to investors because of the advantages it offers, but other advisers dismiss the product as costly and hard to understand, according to this article on MarketWatch. Clients may consider including a variable annuity in their portfolio if they want to have access to equity markets for investment growth in the long term and have tax-deferred savings. A variable annuity may not be the right investment for them if they want to avoid market volatility and higher tax bracket when they start receiving payments.  --MarketWatch

Why taking a vacation is critical to your retirement planning
Many pre-retirees are likely to feel burned-out as they work longer hours and skip vacations with plans of retiring at a later age or no plans at all, writes a certified financial planner. As such, they are advised to take a much needed break so they can have time to ponder on their future options. "Whatever you do as you are transitioning to retirement, consider taking a two-week vacation," the planner writes. "Block off time each year to engage in something that you really look forward to, and that nourishes your soul."  --Forbes

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