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

How retirement strategies should change as clients age
Clients have to change their retirement goals and strategies over the years, starting off heavily in stock allocation while in their 30s, according to this article on Forbes. They should aim for a more diversified portfolio in their 40s by including more bonds, and step their saving efforts in their 50s, gradually reducing their exposure to risks. When they reach the retirement red zone in the 60s, they should have minimized their risk exposure considerably, heeding to investor Warren Buffet's advice. “It is insane to risk what you have ... to obtain what you don't need,” says Buffet.


You may be surprised what retirement income is taxed and what isn’t
Seniors should avoid the mistake of assuming that their tax rate will decline in retirement, as older Americans have lost many tax breaks over the years, according to this article on Washington Post. “You may no longer be earning a paycheck, but don’t forget, money is still coming in the door in the form of pension payments or individual retirement account distributions, both of which are taxable,” says an expert.

How much can you contribute to a solo 401(k) for 2018?
Self-employed clients can contribute as much as $55,000 to a solo 401(k) every year if they are below the age of 50 and are entitled to another $6,000 in "catch-up" contributions if they are 50 years old and older, according to this article on Kiplinger. The annual contribution is bigger compared with other savings vehicles because self-employed clients can contribute both as an employer and employee. Contributions can be pre-tax, and clients can also contribute on an after-tax basis if their plan offers a Roth 401(k) option.

7 factors that'll affect your Social Security check
Workers are advised to maintain a good earnings history and work record as these are among the factors affecting their Social Security benefits, according to this article on Motley Fool. They should also account for the age they intend to claim their benefit, their total income, as well as their birth year, which is the basis for determining their full retirement age. Clients who intend to file for their retirement benefits while working should expect a reduced benefit because of the "Retirement Earnings Test." They should consider relocating to a tax-friendly location, as their home state may also add another layer of taxation on their retirement income.

Are you taking steps to address this major retirement concern?
While living expenses in retirement are likely to inflate in the future and Social Security benefits cannot keep up with these costs, clients can prepare for the cost of long-term care early on, according to this article on Aol. They can achieve this by buying long-term care insurance while they are younger, when they are more likely to get a better deal on premiums than when they are older.