Our daily roundup of retirement news your clients may be thinking about.
Key mistakes investors make in retirement
Investors often make the mistake of thinking their time and savings are running out and micromanage their investments despite having hired a financial adviser once they go into retirement, according to this article by Kiplinger. It is vital for investors to remember the importance of focusing on a long-term goal and avoiding making wrong, emotional decisions based on daily chatter. Investors are also advised to avoid overanalyzing investments and to have a clear idea of how their investment approach may evolve based on the changes and stress they may encounter. — Kiplinger
Retired clients may look to alternative options to long-term care insurance so as not to rely on Medicaid assistance or burden relatives with the monetary and physical costs of care, according to MarketWatch. One alternative is self-insurance, which has an added benefit of providing for any unplanned financial event. Amplifying emergency funds may also serve as an alternative, provided the retiree has ample retirement savings. — MarketWatch
Retirees should carefully consider their situation and resources before choosing to get their company pension via lump sum or monthly payments, according to CNN Money. Clients should decipher if their expenses are essential or discretionary and consider the income that will cover the said expenses. If Social Security can cover regular expenses, clients can opt to go for a lump sum. Retirees should also take into account other assets and retirement savings and their own health before making a decision. — CNN Money
When considering whether to invest in annuities, dividends or hedge funds, it is important to understand the potential of each product has to create the necessary return on investment for their capital inputs, according to this article by Bloomberg. The fundamental question investors should consider is which product or project to invest in that will give them more return on invested capital and greater tax revenues. — Bloomberg
Clients must properly evaluate the sufficiency of their retirement resources and come up with a realistic retirement age so they can retire with enough money, according to CBS Moneywatch. Survey results found a total median household retirement savings at the time of retirement was $131,000, which is not enough to create significant retirement income to supplement Social Security. "People are living longer than at any time in history, yet the age at which we stop working has remained relatively unchanged,” an expert says. — CBS Moneywatch
Register or login for access to this item and much more
All Bank Investment Consultant content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access