Our daily roundup of retirement news your clients may be thinking about.
Market volatility's silver lining for pre-retirement clients
The decline in the stock market gives retirement investors the best time to convert their traditional IRA to a Roth IRA, according to this article on CNBC. Investors can save substantially on taxes when doing the Roth conversion because of the decline in the value of their portfolio. "You've not so much 'lost' money in your IRA, but you're taking advantage of a decline, thereby paying less in taxes for the same expected tax-free outcome," says Tim Maurer, director of personal finance at BAM Alliance. --CNBC
Gen X: Sleeping through the retirement wake-up call
The number of Gen X survey participants who want to defer thinking about retirement investing until they approach their retirement age increased to 45% from 35% in the past four years, according to a survey by the Transamerica Center for Retirement Studies. “Gen X is in retirement jeopardy,” says TCRS President Catherine Collinson. “At their age, they need to be more focused on saving and planning for retirement, but our research found that many have backed away from it.” --Forbes
Medicare’s maze - how clients can maximize benefits
Retirees need to choose the Medicare drug plan that will cover their prescription needs to save on out-of-pocket health-related expenses, says Allen Erenbaum, president of the Consumer Health Alliance. They can also save on prescription costs by finding the drug store in the vicinity that offers the lowest prices and ordering a supply of prescribed drugs that will last for 90 days, instead of 30, Erenbaum says. Clients should also take advantage of free or almost free prescriptions through the Partnership for Prescription Assistance if they qualify, the expert adds.--Fox Business
Millennials in target-date funds got hit hardest by stock selloff
Many millennial clients whose retirement funds were invested in 2060 target-date funds experienced a 10% loss in their savings from July 17 to the market's closing on August 24, according to this article on Time Money. The good side is that these investors will not resort to unnecessary investing behavior, such as frequent trading, if they are invested in these funds. “Sometimes, ignoring your investments can be a good thing. You’re less likely to pull your money out after it loses 10%, and then you’re still invested when the rebound comes,” an expert says. --Time Money
Don't overlook the big city for your retirement home
Large cities such as New York and Los Angeles can be good places to retire as these urban centers offer proximity to museums, theaters and parks as well as providing many services and social opportunities for retirees, according to this article in U.S. News & World Report. These perks outweigh the disadvantages of city living, such as high housing costs. "Another huge advantage [of retiring to a big city] I see is the opportunity to be engaged mentally. There are volunteer activities, cultural events and access to the arts. Of course, transportation is key [to accessing opportunities]," says a certified financial planner. --Yahoo Finance
- Why Social Security Scores as Most Popular Value Add Program
- Annuities Meaningless If Savings 'Practically Zero'
- Why Clients May Face 'Hidden Danger' in 401(k) Plans
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