Our daily roundup of retirement news your clients may be thinking about.
The resignation of highly celebrated CEOs can present a risk that is hard for closed-end funds investors to hedge, according to an article on MarketWatch. The case of Bill Gross' departure from Pimco as managing director and chief investment officer resulted in hefty declines in share prices of 20 closed-end funds at Pimco, with five of these funds that were directly managed by Gross experiencing the sharpest drop. Such a risk could mean that investors are better off with owning diversified open-end funds that trade at the underlying holdings' net asset value. -- MarketWatch
Company owners with fewer than 100 employees may consider setting up a Savings Incentive Match Plan for Employees of Small Employers as a retirement-savings account. Small business owners can easily establish the SIMPLE plan as the procedure will not involve too much paperwork and many brokerage firms and mutual fund companies can administer the plan. Pre-taxed contributions amount to as much as $12,000 this year, with workers age 50 and above allowed to add $2,500, while employer match contribution can be 3% of worker's compensation. Kiplinger
A pre-taxed Roth account is a better retirement saving option than a traditional IRA or a 401(k) plan, but the Roth advantage can be insignificant and uncertain, according to this article in The Wall Street Journal. Investors who are serious about opening a Roth account should realize that they will need to wait for a number of years to see a more significant gain compared with a traditional retirement account. Also, they are required to contribute the maximum allowable amount to the account to get a lower tax rate. The Wall Street Journal
Many retirees are benefitting from employer-sponsored programs designed to help workers transition into post-retirement careers, according to an article in The New York Times. Other companies also offer assistance for their retired employees to find work as volunteers for nonprofit organizations. Retirees are great representatives of company values and ambassadors for the brand, says Jennifer Lawson of nonprofit group Points of Light, adding that "companies are seeing the value of engaging employees throughout their tenure and beyond. The New York Times
Deciding on whether to file for Social Security benefits early can be a complicated task for female workers since their decision should account for all available benefits they are entitled to receive under the system, according to this article on Motley Fool. Taking early retirement benefits can be a "shortsighted" decision for female workers because they are expected to live longer than men, but may be a wise move especially for married women who have a number of claiming strategies to use to maximize their overall family benefits. Motley Fool
Register or login for access to this item and much more
All Bank Investment Consultant content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access