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

Retirees: Avoid these investing mistakes
Some retirees regret to have made bad investment decisions because of greed, according to this article on Morningstar. For other retirees, tinkering too much with their portfolio or having excessive cash allocation was the biggest mistake they made in retirement. Several retirees also lamented that they made decisions that were not in sync with their long-term plan, and hurt their investments as a result.  --Morningstar

Why Social Security suddenly changed its benefits withdrawal rule
A change enacted in Social Security several years ago still catches some retirees by surprise. Before the change in December 2010, people who took an early retirement could return the benefits they had received in order to increase the value in the future. They would “effectively wipe clean their benefit history,” according to this article on Time Money. The current withdrawal policy limits the repayment to one year. Unfortunately, this change did not contain any grandfathering provision. I am not aware of any pending actions within Congress or Social Security that would extend grandfather rights to those who were disadvantaged by this change,” says James Nesbitt, an expert with Rochester, N.Y.-based High Falls Advisors.  --Time Money

Personal Finance: Why don't I get the max from Social Security?
Social Security benefits will be lower than the $2,642 maximum benefit amount if there were years in the past 35 years when earnings were below the taxable maximum amount, writes personal finance journalist Robert Powell. The retirement benefit will also be under the maximum benefit if there were years retirees received no income under the Social Security system or their earnings were very low. The Social Security Administration will also factor in the wage people received in retirement and their benefits may increase if the salary is among the high 35 years.  --USA Today

How to max out your retirement accounts in 2015
Workers are advised to act to make the most of their 401(k) and other retirement accounts next year, according to this article in U.S. News & World Report. To get all the advantages that these accounts offer, they are advised to max out their 401(k) and IRA contributions, and make sure they get their employer's match contributions. They should also open a Roth account, take the saver's credit, reduce investment fees, and avoid any penalties.  --DailyFinance

Retired musician finds a new ‘gig’
A retired musician, who receives pension lower than what his wife is earning, took his financial adviser's advice that he handle their joint finances as the wife is busy with her career. As a result, the retiree enjoys his new role attending to their financial plan and investments, as well as sharing his time and talent at a school. “Giving, in this case, was about more than just tax strategy. It was an opportunity for the client to develop a renewed sense of purpose and self-worth,” the adviser says.   --The Wall Street Journal

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