John Bogle is the founder of Vanguard.
Bloomberg News

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

John Bogle gets the last laugh

Forty years after espousing passive investing while keeping a well-diversified portfolio with minimum cost, Vanguard Group's John Bogle has proven that such an approach to investing will pay off, according to MarketWatch. Data show that tax-efficient, low-cost index funds have outperformed actively managed mutual funds. Many investors, however, continue to engage in actively managed funds because they have a hard time seeing the difference between active and passive investing. — MarketWatch

Social Security filing tactics you need to consider

Married couples can still make the most of their Social Security retirement benefits despite the new law that phases out two strategies that would have allowed them to maximize their benefits, according to CBS Moneywatch. For example, the husband who receives the bigger income may consider delaying his benefits until 70 to increase the benefit value as well as his wife's survivor benefit if he dies before her. The wife may start collecting her benefit at age 66 so they will have an income while he defers his benefit. — CBS Moneywatch

Ready for Medicare? Not until you read this

Clients are advised to do some planning before signing up for Medicare by the time they reach the age of 65, according to The Motley Fool. For one thing, Medicare applicants have various types of enrollment options with different scopes and terms. Contrary to what many people think, retirees are allowed to make changes to their Medicare coverage every year. New Medicare participants are entitled to a free physical checkup as part of the program’s preventive health care initiative. — The Motley Fool

Cash-flow planning before and during retirement

People can manage their retirement savings more effectively by creating a financial plan that will allow them to handle their money issues before and after they retire, according to CNBC. Budgeting will be a major consideration in these two segments, but pre-retirement planning should include setting up an emergency fund and managing investment risks. Taxes and estate planning are two important components that should be found in a post-retirement financial plan. — CNBC

401(k), Roth or SEP: Which retirement plan is best for your client?

As fewer employers offer pensions, workers are left with various saving vehicles to build their retirement nest egg, making many of them confused as to which they will benefit from the most, according to Yahoo Finance. These savings vehicles include employer-sponsored retirement plans, IRAs, annuities and health savings accounts. Clients are advised to consult a financial adviser to develop a saving strategy that will enable them to make the most of these accounts. — Yahoo Finance

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