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Don't let your clients get spooked by retirement spending

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Don't let your clients get spooked by retirement spending
Seniors are advised to avoid overspending after leaving the workforce in order to secure their golden years, according to a study in this article on Yahoo Finance. To do this, clients should review and adjust their budget, consider getting a side hustle and seek professional advice, according to the Generations Ahead study by Allianz Life. They should also consider creating new sources of retirement income, according to the report. Possible income sources are annuities, which offer tax-deferred growth and life insurance (which provides tax-free coverage payouts).

Yes, RMDs could improve your client’s portfolio
Although a required minimum distribution from a tax-deferred retirement account will trigger a taxable event, retirees can use the mandatory distribution to enhance their portfolio's risk/reward profile, writes an expert for Morningstar. "Armed with knowledge of its problem spots, you can then concentrate your RMD-related sales in those areas you wanted to fix anyway," writes the expert. "As long as you take the right RMD amount from your own IRAs, it doesn't matter which holding the money comes from. You can then use your RMD proceeds to achieve still other goals."

It's never too soon: Retirement planning for millennial clients
Millennials are likely to lag behind other generations when it comes to building their nest egg, according to a CFP contributor with Kiplinger. To overcome this challenge, you could advise them to contribute to their 401(k) plan enough to get their employer's match, raise an emergency fund, and invest their extra assets outside their retirement accounts to grow their net worth, the expert writes. They should also consider contributing to a Roth IRA for tax diversification of their income in retirement.

One of the only times you should accept an early retirement offer
Older workers should consider their employers' buyout offers when they are approaching retirement under certain circumstances, according to an article on Money. If they have other employment alternatives, have saved aggressively with debt under control or developed a plan for health insurance costs, it might be a good option, an expert says. “The number one thing we look at for a buyout, before you take it, is, ‘Do you have a plan for where your income will come from?’” according to the expert. "If you’re not getting a paycheck every two weeks, you have to create your own paycheck."

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