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

Advantages of SEP vs. Roth
Clients who have to choose between a SEP-IRA and a Roth IRA may consider the former if they have no access to an employer-sponsored retirement account, since a SEP-IRA offers the benefits of a 401(k) plan, according to website Motley Fool. A Roth IRA is recommended to those who want a more flexible account and need tax-free withdrawals and no required minimum distributions in their golden years. Retirement savers who can contribute to both accounts are advised to do so to make the most of the benefits these accounts offer.--Motley Fool

Less means more for retirees who downsize
Retirees who consider downsizing are advised to weigh their options before making a decision as such a move could be costly, according to USA Today. Moving to a smaller home would not just cut housing costs but could also mean savings on property taxes and utilities. Those who intend to downsize need to look for a smaller home that has a good access to public transportation as well as health care facilities.  --USA Today

Is a longevity annuity a smart choice?
Buying a longevity annuity is a good option for clients who intend to delay their Social Security retirement benefits and expect to have a longer life span, says Michael Kitces, director of research for Pinnacle Advisory Group and a regular contributor to Financial Planning magazine. Longevity annuity buyers can also expect a "magnified income" when they start receiving payouts, Kitces says. "I write a $100,000 check now and I get a payout rate of 30%, but I've got to wait 20 years just to get my first check. So, then we get this very magnified effect on the back-end."  --Morningstar

Digging deeper into withdrawal strategies
Retirement investors who rely on Robert Shiller’s Cyclically Adjusted Price-to-Earnings ratio face a bigger risk of market volatility as the strategy leads to a higher average stock allocation, according to this article in Money. To fix this, investors are advised to rebalance while using the strategy, the article says. One expert is quoted as saying that rebalancing is not about increasing performance, but rather about reducing risk.  --Money

Should clients lock their Social Security numbers?
Locking Social Security number could restrict a client's financial flexibility but it can be a smart move for people who want to prevent fraudsters to use the information, according to Forbes. One expert notes that fraud is more likely to be committed by someone you know, as opposed to a stranger. So it my behoove clients to  place a lock during potential fraudulent scenarios, such as when relationships go bad, divorces get messy, or they find a household employee or contractor going through their paperwork. --Forbes

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