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

Beware of side effects from a target-date fund cure-all
Participants of employer-sponsored retirement plans may consider investing in target-date funds if they experience investment paralysis, apathy, or time deficiency, according to MarketWatch. While target-date funds are logical and easy to administer for employers, such financial products may have serious side effects for clients' financial standing. These funds can be volatile since they include stocks and bonds, so clients may panic, make wrong decisions based on emotions, and subsequently run short of money.--MarketWatch

Many reasons to offer 401(k)s (including owner’s retirement)
Although employees may not be interested in contributing to 401(k) plans, small business owners can still set up such retirement plans, as they are the best way for them to build their own nest eggs, according to The New York Times. While sponsoring a 401(k) plan is easier and cheaper, matching employees' contributions poses a bigger concern. Matching workers' contributions will give small business owners the edge in recruiting and retaining workers, but employers who are unprepared can offer the traditional plan. Separately, the New York Times has another article on alternatives for business owners to conventional matching of 401(k) contributions. One alternative option is for employees to receive higher matches for bonus money stashed in 401(k) plans, while another is to have tiered matching contribution percentages, depending on salary level and job function. Another option is to have a profit-sharing plan that could be divided equally among all employees who worked for the firm under specific tenure requirements. You can read the full article here:  Is there a fair way for employers to match 401(k) contributions?  --New York Times

4 simple rules for juicing up your retirement fund
Sticking to a few but proven investment principles can help a retirement investor maximize gains without engaging in high-risk and faddish investment products, according to CNN Money. Setting up an overall plan and not cherry-picking funds is important in establishing the direction of a portfolio, while reining in costs. It is also easier to track the market than trying to beat it, as “average” results are better than picking high-performing funds that may be vulnerable to market movements.  --CNN Money

Your retirement number: Who cares?
An effective strategy for clients to plan for their golden years starts with determining the retirement income they will need and checking whether they are on track in achieving it, according to Forbes. It will help if clients are realistic in retirement planning and in determining their chances of getting their nest egg goal based on the investments they hold. “Monte Carlo” simulations, which are used by many 401(k) plans and retirement calculators, yield such results and can greatly help retirement savers.  --Forbes

3 simple steps to make the most of your 401(k)
Clients can optimize their retirement saving by matching the company's contributions in 401(k) plans and setting aside up to 15% of their pay, according to Kiplinger. 401(k) participants can also evaluate their plan's annual statement and make necessary changes to improve returns. Clients are also advised to review their portfolio every year and to rebalance it if needed to make sure they are on track to meet their goals.--Kiplinger

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