Military to revamp its retirement system to attract millennials: Retirement Scan
Our daily roundup of retirement news your clients may be thinking about.
The military is revamping its retirement system to attract millennials
The U.S. military is set to implement a new retirement system that will allow for 401(k)-type savings and provide financial education services to help its personnel make better investing decisions, according to this article on Money. The revamp is aimed at attracting young people to join the military. The new system will start Jan. 1 next year.
Here’s why people are anxious about retirement
A survey commissioned by the American Institute of Certified Public Accountants has found that 49% of Americans were not confident about their retirement goals, according to this article on MarketWatch. Of these respondents, 29% were unsure if they would reach their retirement targets, with 20% saying they had doubts about their prospects, the survey found. “People have anxiety about retirement goals and don’t reach it because they don’t run the numbers,” says an expert.
10 do's and don'ts for last-minute IRA contributions
IRA investors who want to make last-minute contributions should ensure they elect the right type of IRA and should not worry too much about making the wrong choice, according to this article on Morningstar. That is because they are allowed to do a "recharacterization" after making the contribution to fix any mistakes or bump in their tax bill. Read the article for more last-minute tips for clients to contribute to their IRAs by the April 18 deadline and get the tax break on their 2016 returns.
Pros and cons of 401(k) brokerage options
401(k) participants should take advantage of the brokerage window that their plan offers to gain access to better investment options and boost their return potential, according to this article on Yahoo Finance. Those who intend to use their 401(k)'s brokerage window are advised to watch out for fees, to monitor the markets for latest trends and updates that can affect their investments, and hire a financial advisor when necessary. "Having the advice of a professional often helps separate emotional decision-making from rational decision-making during difficult markets, a factor that is often overlooked by the do-it-your-self investor," says an expert.
Ask Larry: Can my wife delay her spousal benefit after taking an early retirement benefit?
A wife who collects Social Security before her full retirement age is deemed to have filed for her spousal benefit on her husband's record the moment he files for his own retirement benefit, according to this article on Forbes. This means that she cannot delay her spousal benefit, which will be her excess benefit. The benefit will also be reduced since she has not yet reached her FRA.