Our daily roundup of retirement news your clients may be thinking about.
Retirement investing advice in volatile market
As the stock markets get volatile, retirement savers are advised to avoid making decisions based on short-term trends as these actions could undermine their retirement plans, according to an article in USA Today. In a Q&A format, market experts cautioned that a small number of investors buy and sell stocks on an ordinary trading day, though more clients buy on a down market day and sell when markets go up. And they said that those who are overly concerned about market volatility should build a diversified portfolio based on their goals and tolerance for risk, and continue their retirement plan contributions to take advantage of compounding. --USA Today
Pension funds eye reducing hedge-fund investments
More pension funds in the U.S. are poised to reduce their hedge fund investments following a decision by the California Public Employees Retirement System to scrap its $4 billion hedge fund program, according to an article in The Wall Street Journal. Investors have been drawn to hedge funds, which outperformed other investments during the financial crisis in 2008, according to research firm HFR. However, for three years that ended March 31, pension funds investments in hedge funds yielded gains at an average of 3.6%, lower than the returns from private equity and other investments, according to Wilshire Trust Universe Comparison Service. --The Wall Street Journal
Easing into your retirement role
Transition into retirement can be challenging for some people who have led a busy life because of their demanding careers, according to this article in U.S. News & World Report. After leaving the workforce, they have all the time to pursue things they have wanted to do, but choosing which is meaningful and productive may prove to be difficult. Clients who are entering the retirement phase will need to develop a plan to make the transition as convenient as possible. --Yahoo Finance
Divorce after 50: It's complicated, especially if retirement is near
Divorce gets more complicated when those involved are pre-retirees, according to this article on CNBC. The divorce proceedings are likely to involve more assets and debt, while there are more retirement accounts and more estate-planning concerns to tackle when couples are in their 50s. Older divorcees also won't have enough time to rectify bad decisions in their retirement planning.--CNBC
Medicare recipients celebrate premium freeze, but will it last?
The government's decision to make no changes to Medicare premiums for 2015 is welcome news to program beneficiaries, but some experts doubt whether the freeze in premiums will continue in the coming years, according to this article on Motley Fool. When most baby boomer retirees reach old age, there can be an increased demand for health care, and Medicare may face a crisis because it could result in higher costs for the program, experts say. Other analysts are less pessimistic, saying the costs could be contained by greater use of generic drugs, and patients' refusal to take unnecessary medical procedures. --Motley Fool
- IRS Offers Guidance on After-Tax Rollover Allocations
- One Third of Americans Lack Retirement Savings
- Investment Strategies for Rising Rates
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