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

How clients can purge their 401(k) of toxic funds
Clients stand to lose from some mutual funds within 401(k) plans; specifically those that charge hefty fees but underperform compared with other investment options, according to Forbes. To get rid of these funds, 401(k) participants should prompt their employers to replace these funds with ETFs or index funds, which have lower fees and can help them diversify their 401(k) portfolio. Clients may also request funds that have “institutional” expense ratios or managed accounts as well as independent fiduciary audit.  --Forbes

Obama to urge easing 401(k) rules for small businesses
President Barack Obama intends to push for new rules in his 2017 budget that would allow small businesses from different industries to band together and form 401(k) retirement plans for their employees, according to officials. Such a proposal would minimize administrative costs and compliance issues, making 401(k) plans accessible to more workers, officials say. “We need to find new ways to help working families build up a nest egg,” says National Economic Council Director Jeffrey D. Zients.  --The New York Times

4 myths about Social Security
Clients need not apply for Social Security retirement benefits over concerns that they could no longer get their benefits as a result of the program's financial woes, according to CBS Moneywatch. Also, they should avoid making such a move if they fear that their benefits would be reduced as the federal government revamps to improve the program's financial status. Clients will not improve their retirement prospects if they collect their benefit early and invest the funds, nor reduce their taxes by taking an early retirement.  --CBS Moneywatch

How to close a retirement savings gap
Clients are advised to get a good estimate of their retirement income needs and focus on curbing their spending in their golden years to close a gap in their retirement savings, according to Morningstar. They should also consider delaying retirement and study the different ways to claim Social Security retirement benefits to determine which best suits their circumstances.  --Morningstar

The hidden risk of claiming Social Security lump-sum benefits
Clients can get lump-sum Social Security benefits if they file for their benefits after reaching their full retirement age, according to Money. For example, they can claim six months of payments if their full retirement age is 66 and they file at age 66 1/2. However, claiming lump-sum benefits usually is not a good move since it would mean giving up increase in future benefits.   --Money

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