Our daily roundup of retirement news your clients may be thinking about.
Pension funds are joining the currency markets to protect their offshore investments and gain from future price changes in the financial world as the U.S. dollar continues to perform well, according to this article in The Wall Street Journal. "The pickup since December has been extraordinary. We've had more funds interested in our strategies in the last three months than we've had in the last three years," says Adrian Lee, manager of currency hedge fund Adrian Lee & Partners. The Wall Street Journal
Contributing to a Roth IRA is an option for clients who want to save for education expenses, according to this article on MarketWatch. It's because this type of retirement account will not be declared as an asset on the Free Application for Federal Student Aid form, which is required for those who want to get student aid. Also, a Roth IRA is more flexible than a 529 plan but contributions may not be subject to taxes. MarketWatch
Long-term care insurance premiums are on the rise as insurers are experiencing a slump in profit because of hefty long-term care costs, according to this article from The Associated Press. "Insurers that sell these products lose money on them. So they're raising prices and also trying to get out of the business right and left," says Vincent Lui, a life-insurance analyst with Morningstar. DailyFinance
Couples who expect to retire at age 65 this year will need to have $220,000 on average to cover medical expenses through their golden years, according to an estimate by Fidelity Investments. Clients may use AARP's free Health Care Costs Calculator to have a more personalized estimate. They may add 7% inflation rate to the current projected costs produced by the software and account for dwindling discretionary spending, an approach that "allows for greater funding of medical expenses," says Leonard Wright, a CPA and personal financial specialist. YahooFinance
A divorcee who remarried will no longer be entitled to a spousal benefit on his former spouse's record even if the marriage lasted at least 10 years, according to this article on Forbes. His new wife, a foreign national, can claim reduced spousal benefit on his work record when she turns 62 and reduced widow's benefit she reaches 60. Forbes
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