Proposal would allow Harvey victims to use retirement savings for home repair
Retirement plan advocates are urging the federal government to allow Hurricane Harvey victims to withdraw from their 401(k), IRA and other retirement accounts without facing any penalty, according to USA Today. Advocates say that these victims may have no other savings that they can use to recover from the disaster, but other experts should think twice before tapping their retirement account. "Even for permissible reasons, this deals a permanent setback to your retirement planning," says a financial analyst with Bankrate.

Source: Bloomberg

It’s time to flip your financial focus
Inflation and sequence of returns risk are among the topics that clients should discuss with their financial planner to secure their retirement, according to this article on Kiplinger. They should also tackle the 4% withdrawal rule and healthcare costs so they can create a more comprehensive retirement plan. Tax planning is also an important part of the plan, as it will enable them to develop tax-efficient ways for tapping into their nest egg and identify the tax breaks that are available to them for enhanced savings.

Would a Roth IRA save you money?
Investors are advised to estimate what their tax bracket would be in retirement so they can determine the right type of IRA to use to build their nest egg, according to this article on Motley Fool. Clients who expect to move to a higher tax bracket after they retire should consider a Roth IRA, which is funded with after-tax dollars but provides tax-free income. For those whose tax bracket will be lower in retirement, a traditional IRA is a better option, as their savings will not be taxed until they start taking distributions in the golden years.

Ask Larry: Should I take spousal benefits at 66?
A senior who will turn 66 in a couple of months is advised to file for a Social Security restricted application and collect just his spousal benefit on the record of his spouse, who is already receiving her retirement benefits, according to this article on Forbes. He may switch to his own retirement account when he reaches the age of 70. Such a move will have no impact on his own retirement benefit.

How to know whether you have ‘enough’ to retire early
Saving enough for retirement security varies among individuals, and the needed amount of savings depends on a variety of factors, according to this article on MarketWatch. To save enough for the golden years, clients are advised to determine their annual spending and the corresponding trends over the years. They should also create a good contingency plan, identify and create new income sources, and use the best method to calculate their retirement projections.

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