Our daily roundup of retirement news your clients may be thinking about.
Can your retirement portfolio survive a stock market crash? Here's how to tell
Although the market continues to rally, a possible setback remains likely and retirement investors should be ready for this scenario, according to this article on Money. To prepare their portfolio for a market downturn, clients are advised to review their asset allocation of stocks and bonds and determine the potential damage that their portfolio would sustain from a market crash. They should also consider adjusting their asset allocation if the potential losses would be considerable based on their estimates.
Social Security, Medicare Face depletion within 17 years, Trustees say
A report from the Social Security Board of Trustees projects that the trust fund for the program's disability program will be depleted by 2028, according to this article on The Wall Street Journal. The projection is five years longer than the previous estimate, and this could be attributed to lower turnout of the number of applications for disability benefits. “As the labor market tightens, I think it’s natural to see individuals have more work opportunities. We must build on this good news,” says Labor Secretary Alexander Acosta.
Don’t fall for the conventional wisdom when choosing an IRA
Retirement savers are told to choose a traditional IRA if they expect to move to a lower tax bracket after they retire, or to pick a Roth IRA if they think they will be in a higher bracket in retirement, according to this article on MarketWatch. However, clients could still be better off with a Roth IRA even if they move to a lower tax bracket, as they could still save on taxes for the Roth distributions. Moreover, having a Roth IRA enables clients to achieve tax diversification in retirement, as they would have tax-exempt income aside from the taxable distributions from 401(k) and other tax-deferred accounts.
How do your funding tactics work together in your retirement income framework?
Clients who need a framework for retirement income planning may want to use the Retirement Income Optimization Map, writes Wade Pfau, a principal at McLean Asset Management, on Forbes. The framework enables clients to determine whether they are on track to achieve their goals and identify the necessary adjustments to make to hit their targets, writes the expert. "It is about making sure that assets are used efficiently to meet goals and cover liabilities. It is also about making sure that you are ready to make any necessary changes over time as your situation and plans evolve."
Social Security benefits projected to rise 2.2% in 2018
The Social Security's Board of Trustees has said that beneficiaries can expect a 2.2% cost-of-living increase in their benefits in 2018, according to this article on USA Today. The increase would mean an additional $30 per month for average retirees. Social Security is expected to make an official announcement of the increase in October.
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