Our daily roundup of retirement news your clients may be thinking about.
A report found that a slump in home ownership is negatively affecting retirement security. The report revealed that today only 35% of the richest households own home equity and 50% of homeowners now come from households with median net worth of $42,460. Meanwhile, rents are increasing, resulting in citizen's have less money to allocate for retirement. Time Money
Nearly 70% of Americans would require long-term care in the future but most still choose not to get long-term care insurance because of the possible wasted value if they end up not using the coverage. Additional features such as retirement income payouts or life insurance can help entice clients to invest in long-term care coverage. Adult children are also ideal clients as they are likely more concerned about nursing-home care costs for their parents. MarketWatch
Tips on how to avoid seven common retirement-portfolio withdrawal mistakes are tackled by this article in Morningstar. The mistakes include failing to modify one's portfolio value based on market conditions, not planning for big purchases such as new-car purchases or special travel plans, failing to consider one's age, not taking into account one's portfolio mix or taxes, just sticking to a portfolio's income payout and not seeking professional help. Morningstar
Contributing as much as you can on your 401(k) will come a long way once you retire, according to Motley Fool. Employees usually just contribute to take advantage of a full employer match but that may not be enough for the retirement lifestyle you want. Employees can contribute as much as $18,000 a year as ruled by the IRS but saving that much money is not practical so just save as much as you can without compromising your current lifestyle. Motley Fool
Investors who have government pension may lose up to two-thirds of their Social Security benefits, including divorced spousal and widow benefits, or equivalent up to half of their non-covered pension. Divorced clients who want to get both benefits are advised to wait until full retirement age before collecting spousal benefits and wait until they are 70 years old to collect their own benefits, as well as their delayed retirement credits. Forbes
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