Our daily roundup of retirement news your clients may be thinking about.
Should your clients be landlords in their retirement?
Experts agree that clients should consider including real estate property in their retirement portfolio, according to this article on MarketWatch. Real estate is a good investment because historical data show that increases in rental rates outpace inflation, although clients have to make a number of considerations, such as cash flows and tax implications, before buying a property. "Smart investors realize that the value of their time is greater than the fees paid to a property manager, and property management fees are tax-deductible, so they cost less than they appear," says an expert.
A step-by-step guide to asset allocation in retirement
Retirement investors are advised to learn the basics of asset allocation to be able to determine the appropriate mix of risk and return potential for their portfolio over the years, according to this article on Motley Fool. For example, they should adjust their ideal stock/bond allocation as they age, and determine their own tolerance for risk. Investment options are not created equal, so clients should choose the ones that suit their risk tolerance and need for returns.
If your Social Security benefit is smaller than expected, here's why
Clients can expect a reduction in their Social Security benefits if they have unpaid debts, such as student loans and overdue taxes, with the federal government, according to this article on CNBC. The federal government seized nearly $713 million in Social Security payments under the Treasury Offset Program to write off delinquent debts during fiscal year 2016. "If you see that coming down the road, do everything you can to try and prevent it," says a spokesman for the National Foundation for Credit Counseling.
Q&A for federal workers: New TSP investment, withdrawal options
One of the five funds in the Thrift Savings Plan tracks international stocks, and it will expand to include emerging markets and Canada in 2019, according to this article on Washington Post. The TSP is the 401(k)-style program for people working in the federal government. Other investment options in the TSP are "lifecycle" funds that hold investments in the basic funds in ratios with withdrawal dates in 2020, 2030, 2040 and 2050. The TSP may also open an investment "window" through which account holder can invest in other funds, such as actively managed mutual funds, outside of the account.
The $10 lifetime national park pass for seniors is about to get a lot more expensive
The National Park Service is expected to increase the prices for senior lifetime national park passes from $10 to $80 beginning Aug. 28, according to this article on Money. Despite the increase, which is a result of law passed by Congress in December, seniors can still save on entrance fees to these parks. "If a senior visits three of the $30 parks, she or he has already saved money. Plus, the pass allows those traveling with seniors to enter the park with them," says Kathy Kupper, a spokesperson for the National Park Service.
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