Our daily roundup of retirement news your clients may be thinking about.

The smart way to fine-tune your portfolio
Retirement investors would be better off owning an all-value equity portfolio than a combination of growth stocks and value stocks, according to this article on MarketWatch. An analysis of Data from 1970 to 2016 shows that an all-value portfolio yielded a higher return compared with a blend fund without taking extra risk. Moreover, increasing asset allocation in U.S. equity funds would not result in a significant increase in returns.

(Bloomberg News)
(Bloomberg News)

Why your 401(k) can be a cash drain
While contributing to a 401(k) plan helps workers reduce their taxable income and their tax bill, socking away too much in the plan leave clients with no cash to cover unexpected expenses, according to this article on USA Today. "Oftentimes investors box themselves in — in terms of future financial options — by worshiping solely at the altar of tax-deferred retirement accounts," says an expert. "The main mistake is not doing a realistic assessment of what your cash needs could be under various scenarios."

7 ways to start a business and protect your retirement
Clients should consider other funding options before tapping their retirement savings to finance a business, according to this article on Forbes. They may want to apply for a loan and grant with the U.S. Small Business Administration or seek funding grants offered by major industries. Clients may also opt for a home equity line of credit, a life insurance line of credit and a stock-secured line of credit. A joint venture partner and crowdfunding are other possible sources of funds to launch a business.

Many boomers face double trouble in GOP healthcare bill
A report from the Congressional Budget Office indicates that the proposed American Health Care Act would make health coverage less affordable for preretirees, with some of them eventually not being able to get insurance, according to this article on Money. The healthcare bill, which cleared the House recently, would lead to a substantial increase in premium prices for lower-income seniors. Healthcare costs would also increase under the bill, says an expert with AARP. “There’s nothing in this bill to reduce the cost of prescription drugs or to help premiums go down.”

Are retirees worse off now than in prior generations?
Although many of today's older people have not saved enough for retirement, they are better off than the previous generations, according to this article on CBS Moneywatch. Present-day retirees are likely to live longer than expected, and this would enable them to work and earn longer, which would help prevent cognitive decline. Technology, advances in medical science, and more support programs also make life easier and more manageable for today's retirees than their predecessors.

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