What to do with that 2% raise in Social Security checks
The 2% increase in Social Security retirement payout should not prompt retirees to make any major changes to their financial and investing plan, according to this article on U.S. News & World Report. "It all comes down to the individual," says an analyst. "If the person needs that amount to meet their monthly financial needs, then, obviously, that is the best use of the money…If the person or couple doesn't need the money to maintain their standard of living, then they can use the money in a multitude of ways."
Medicare, Medicaid And long-term care: Your questions answered
As older Americans will need long-term care in their advance years, clients should know that Medicare provides very limited coverage for a nursing home stay for a short period of time, according to this article on Forbes. “We did research and found over half of people expect Medicare to be their primary source of health coverage in retirement, but long-term care is only covered in really limited circumstances. So people may have an unpleasant surprise coming,” says an expert.
How much will I have when I retire if I max out my 401(k)?
Clients should consider maxing out their 401(k) contributions to end up with a sizeable nest egg by the time they retire, according to this article on personal finance website Motley Fool. They can contribute up to $18,500 and add $6,000 if they are aged 50 or above for 2017. If they are 35 years old and max out their contributions, they could have $2 million based on 7% annualized returns when they turn 65.
Procrastination pays! Why you should delay retirement for as long as possible
Clients will be better off deferring their retirement as long as they can, as they may not be ready to enter the golden years, according to this article on website Bankrate.com. Delaying retirement could boost their Social Security benefits and give them more time to save, pay off their credit card debt and mortgage. Moreover, a study has found that seniors would improve their financial readiness for retirement from about 30% at age 62 to almost 80% at 70.