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When a trust for children with disabilities fails

Welcome to Retirement Scan, our daily roundup of retirement news your clients may be talking about.

How a client’s special needs trust for a child can fall apart
Parents are advised to do their due diligence before setting up a special needs trust for their child with a disability, as the laws can be complicated, according to this article in Kiplinger. They should take advantage of charitable and nonprofit support programs when preparing for the future of the child. It also pays to discuss eligibility rules with relatives who intend to give gifts to the child, leave a share of their estate or name the child as a beneficiary for their retirement plan or life insurance.

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This is what a comfortable retirement costs in every state
The amount of income that seniors need to retire comfortably depends on the state where they intend to spend their retirement, according to this Yahoo Finance article. This can be explained by the fact that the cost of living differs from one state to another. For example, retirees can live off on an annual income below $55,000 if they live in Mississippi, Oklahoma, Arkansas and Missouri, while those in the District of Columbia and Hawaii will need more than $100,000 in yearly income to enjoy retirement.

8 podcasts for anyone nervously facing retirement
This article from The Wall Street Journal outlines eight podcasts that offer useful information for seniors who are getting ready for retirement. “These eight podcasts help you prepare for the financial, emotional and mental tolls of retirement — it’s not all golf courses and Caribbean cruises — whether you’re moving on from an illustrious career or a more workaday professional existence.”

Careful planning and frugality can lead to early retirement – but only if clients are truly committed to the goal.
September 12

Common mistakes clients make with their retirement income plans
Clients are advised to avoid hefty investment products when creating a retirement income plan, writes an expert in Kiplinger. They should avoid taking on more risk than they can tolerate, develop a withdrawal strategy based on their circumstances instead of sticking to a 4% rule, and focus on how taxes can impact their retirement income. “For example, a retired couple receiving Social Security and a small pension could be in a low enough income tax bracket that they potentially could withdraw a portion of their IRA earnings or tap their taxable accounts and possibly have no (or very minimal) overall taxation.”

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