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

Maybe the young shouldn’t dive into stocks
Investors in their 20s and 30s are advised to reduce their stock allocation in their retirement accounts, as a study shows that they are likely to change jobs and subsequently cash out a part or all of their accounts, according to Rob Arnott, chairman of Research Affiliates. By taking money from their retirement accounts, they incur substantial losses from taxes, a 10% penalty, and missed employer's match contributions, Arnott says. Young investors may consider holding a more balanced mix of assets, for example a 40/40/20 split among stocks, bonds and cash and adjust the allocation when their portfolio's worth matches their yearly take-home pay, Arnold adds.  --The New York Times

Consolidate your individual retirement accounts
Retirement savers can reduce brokerage costs, mutual fund expenses and trading fees if they combine all their IRAs into a single account, according to this article on Kiplinger. They can also get tax software at a lower cost or a complimentary portfolio review by a financial planner if they only have one IRA account. Taking required minimum distribution will be much easier and people will be less likely to miss an IRA account when it's time to make a RMD, financial planners say.  --Kiplinger

Where does the U.S. rank when it comes to retirement security?
The U.S. remained at no. 19 spot in the ranking of countries on providing security to retirees, with some negative trends making its rank "fragile," according to Natixis Global Asset Management. The widening income gap, an aging population and a shift to self-directed 401(k)s and IRAs are among the trends that make the country's ranking very insecure, according to the money management firm. "We're seeing that individuals will have to shoulder more of the financial burden by saving and investing more effectively to ensure financial security in retirement," Natixis's John Hailer said in a statement.  --CBS Moneywatch

Social Security Q&A: How should I file after my lower earning spouse just passed?
A 58-year-old widow who had been earning more than her now-deceased husband may wait until she turns 70 to start receiving her own retirement benefit, according to this article on Forbes. She may consider filing for a widow's benefit on her spouse's record at the age of 60. The earnings test would not reduce the benefit if her income is not too big.  --Forbes

Put your teen’s lawn-mowing money into a Roth IRA
Parents may encourage their teenage children to start saving for retirement by investing earnings in a Roth IRA, according to this article on MarketWatch. A child's Roth IRA will share the same rules as those for adults' account, although a custodian is needed for the account if the holder is below 18. Having a Roth IRA at an early age will allow the money to grow because of compounding, says Thomas Fritz, a financial planner with Wilson Financial Advisors. "If they start at 14, they've got 50 years. If you start early, you don't have to save so much later on."  --MarketWatch

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