Baby boomers look to senior concierge services to raise income: Retirement Scan
Our daily roundup of retirement news your clients may be thinking about.
Baby boomers look to senior concierge services to raise income
More people are taking part-time jobs providing housekeeping and other services to seniors who are living independently, according to this article on The New York Times. The industry is attracting semi- and fully retired people who want to continue working or find a "more meaningful" job. “We see a lot of women who had raised their families and cared for their parents out there looking for a purpose,” says a photographer who works as a part-time driver for older clients.
Roth IRA tax guide for 2017
While investors contribute aftertax money to a Roth IRA, distributions are not subject to taxes, unlike in a traditional IRA, where contributions are pretax but withdrawals are taxed as ordinary income, according to this article on Motley Fool. Moreover, savings in a Roth IRA grow tax-free, while the account is not subject to required minimum distributions when clients reach the age of 70 1/2. Roth investors are advised to contribute the maximum amount to make the most of the account's tax advantages.
Money expert says this simple chart from 1994 changed his life
A columnist claims that a chart showing the power of compound interest convinced him to start building a nest egg at an early age, according to this article on CNBC. The chart shows that, because of compounded growth, retirement savers who start saving $250 a month at age 25 could end up with $878,570 when they retire at age 65, while those who begin setting aside the same amount at age 45 would only have $148,236.
Ask Larry: Can we increase my wife's benefits?
A retiree who filed for and suspended his retirement benefit under the old rules is advised to reinstate his benefit a couple of months before reaching the age of 70, according to this article on Forbes. When filling out the application, he should indicate in the Remarks section that he wants to resume his benefit in the month he turns 70, and that he does not intend to receive retroactive benefits.
Health savings accounts can supercharge retirement funds, but not for this guy
Clients with a high-deductible plan have the option to do a one-time rollover of some of their IRA assets into a health savings account, according to this article on Los Angeles Times. They could transfer up to $7,650, which is the contribution limit for HSA. Those who have no longer a high-deductible plan are not allowed to do a rollover nor make new contributions.