Our daily roundup of retirement news your clients may be thinking about.
Providers such as Fidelity Investments, Ally Bank and Charles Schwab offer account rollover options that clients can use to earn money, although they aren't given in cash, according to Time Money. However, a client should make sure the new providers possess the kind of retirement investments one wants and does not force high-cost active mutual funds or managed portfolio services on an account. Time Money
Individuals with higher incomes who wish to apply for a backdoor Roth IRA investment should be wary of the pro-rata rule, the quality of their 401(k) plans and the deadline for re-characterizing assets to prevent higher costs and taxes, according to Morningstar. IRA investments in fast gaining assets and last minute conversions could also hinder benefits from a backdoor Roth IRA. Individuals should also remain informed about the future of such contribution. Morningstar
Small firms could avail more affordable 401(k) plans for their employees through startup Honest Dollar, which has begun limited beta testing online, according to The Wall Street Journal. Availing the service could only cost companies $10 monthly per employee and free of set-up charges, said CEO Will Hurley. Employers could also use Honest Dollar for their standard pretax and Roth IRA offerings to employees. The Wall Street Journal
If a higher-earning spouse intends to delay his or her retirement until age 70, their lower-earning partner can claim the Social Security benefit early to get extra income for the household, according to this article on Kiplinger. Upon the death of the higher-earning spouse, the lower earner can boost his or her retirement savings by switching to a survivor benefit. -- Kiplinger
Financially supporting adult children is cutting a huge portion out of retirement savings, according to this article on Bloomberg. A Bank of America poll showed that over a third of Millennials still get financial assistance from their parents. Parents can salvage their retirement savings by making maximum contributions to their 401(k) plans. -- Bloomberg
- What Advisors Need to Know About Their Older Clients
- Ask Aging Clients: Can They Stay in Their Homes?
Register or login for access to this item and much more
All Bank Investment Consultant content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access