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The case for small-cap value just got stronger — even for retirees

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The case for small-cap value just got stronger — even for retirees
Historical data show that small-cap value investing is highly recommended to clients building their retirement portfolio, according to this article on MarketWatch. They are advised to overweight their portfolio with small-cap value stocks and funds. One option to do this is to invest in an IRA if their 401(k) plan offers such investment type, and own one or more small-cap value funds or exchange-traded funds in the account. This will allow their 401(k) portfolio to get an added boost from small-cap value options.

While passive funds track an index, active managers can still beat the averages and earn the much-discussed small-cap premium.
June 5

Planning for the high cost of health care in retirement
Clients who are saving for hefty health care costs in retirement are advised to understand how Medicare works so they can adjust how much they save and ensure that they will have enough savings for these expenses in the future, writes an expert on Forbes. They also have the option of contributing to a health savings account if they carry a high deductible health plan. Another option is long-term care insurance, which offers protection "against the potentially exorbitant cost of skilled care," writes the expert.

Why Americans talk themselves out of retirement security
A study by TIAA-CREF has found that although guaranteed income is a top priority of 56% of Americans engaged in retirement planning, only 13% of the respondents own an annuity, writes an expert for Kiplinger. Many clients do not understand how annuities work or they are misinformed about the product, explaining why many of those who want guaranteed income did not annuitize, the expert explains. "The best way to protect yourself from bad advice is to find a truly independent adviser with the broadest possible access to the world of financial products, including access to multiple service industries."

Real estate headache: Baby boomers who won't sell their homes
Homebuyers are facing low inventory and high prices, and baby boomers are making things more difficult for them, according to this article on CBS Moneywatch. That's because many seniors are living longer, and this allows them to defer retirement and sell their homes. "Several years ago there was an expectation that as baby boomers move into retirement, there would be a surge of homes hitting the market. That really hasn't materialized," says an economist.

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