Our daily roundup of retirement news your clients may be thinking about.
Build a better retirement income strategy
Laddering is a good fixed-income strategy that will enable retirement investors to earn higher yields as well as protect them from interest rate increases, according to this article on CNBC. The strategy allows investors to buy bonds or certificates of deposit at staggering maturities and reinvest the proceeds from mature bonds and CDs into debt instruments that suit their income needs. Clients are advised to shop around for bonds and CDs instead of simply relying on custodian or broker before building a ladder, according to this article. --CNBC
How retirees can make money in the sharing economy
Seniors who want to take advantage of the work opportunities that the sharing economy offers need to determine the good or service they can give, according to this article on U.S. News & World Report. Yahoo Finance. Once they decide what to offer, they are advised to advertise their good or service online or through the traditional marketing methods. Seniors are drawn to the sharing economy because it also "enables them to be doing something that adds value" while earning, an expert says. --Yahoo Finance
A better strategy for claiming Social Security
A financial planner discouraged a couple to file for their Social Security retirement benefits when they turn 66, according to this article in The Wall Street Journal. Although the income from Social Security will enable them to pay down their mortgage, the expert points out the increase in benefits if they delay the benefits until they reach 70. Also, 85% of the couple's combined benefits will be subject to income tax, so the expert has advised them to use the file-and-suspend strategy to maximize their benefits. --The Wall Street Journal
How to inherit a 401(k)
A 401(k) inheritance is subject to Internal Revenue Service rules and guidelines set by the employer's plan, according to this article on The Motley Fool. Beneficiaries may get a lump-sum distribution or leave the assets in the account within five years, with surviving spouses allowed to roll over the distribution to their own IRA. Those who inherit assets in a 401(k) plan are advised to develop a distribution strategy to minimize the tax liability since withdrawals from the account will add to their own taxable income for the year. --The Motley Fool
Would your client consider an hourly-wage job in retirement?
Many people are returning to work after they retire, with some of them working on an hourly-wage basis, according to this article on Fortune. Those who want to do an hourly-wage gig are advised to know a lot about the employer and prepare an explanation if they are over-qualified for the job. They also need to show genuine interest and enthusiasm in the position they are applying for to convince the employer that they are the best choice for the job. --Fortune
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