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

Top 10 mistakes by annuity shoppers

Clients who consider buying an annuity product are advised to avoid buying a one-size-fits-all product and to check offerings by as many carriers as possible before making a decision, according to this article on MarketWatch. They also need to avoid annuities that have good-to-be true propositions, picking products based on contractual guarantees, and purchasing annuities for market growth. Retirement investors are advised to start their analysis at the "finish line," avoid distraction by immediate bonuses and riders, buy only from high-rated carriers, refuse to buy if they are forced to sign the contract, and opt for long-surrender charge periods. –MarketWatch

Give financial help to adult children without putting your retirement at risk

Pre-retirees can help their adult children in financial distress but they need to make sure their retirement is not compromised, according to this article from Consumer Reports. They are advised to intervene in their children's financial problem if it is very serious and they are in the position to help, says an expert. If they feel the need to help, they should tap their emergency fund, bank account and even taxable investment account before they take a loan from their 401(k) or a tax-deferred account. They can also help by providing nonmonetary assistance, such as offering their extra car and asking their friends in their profession to help find a job for their distressed children. –Yahoo Finance

Supreme Court receptive to investors in 401(k) case

The Supreme Court said that a federal appeals court made a mistake for ruling that workers of Edison International were prevented by legal time limit from suing the firm for offering higher-cost funds as options in the 401(k) plan for more than six years, according to this article on The Wall Street Journal. The argument could mean the High Court would made a favorable ruling for 401(k) participants involved in the case, and such a decision would trigger similar lawsuits in the future. –The Wall Street Journal

Retirement: Why small-business owners don't save

More than 5 million baby boomers launch their own business or become self-employed because of various factors, but many of them are not building a nest egg for their golden years, according to this article on USA Today. These entrepreneurs devote most of their time managing the business, including driving their business to grow, monitoring the bottom line and handling their employees, leaving them with no time to save for retirement, says Neil Smith, executive vice president of Dresher, Pa.-based Ascensus. "They make the conclusion that the business will be their retirement fund. In many businesses, it can be a difficult transaction to get the liquidity out of the business," Smith says. –USA Today

Social Security Q&A: Can we manipulate what we pay ourselves to maximize benefits?

A couple who work for their own business may declare their salaries bigger than their actual pay to maximize their Social Security benefits, according to this article on Forbes. Such a move could increase their average monthly earnings and their Primary Insurance Amount. However, the couple needs to avoid transactions that aim to reduce their tax burden since they are expected by the Internal Revenue Service to allocate their earnings based on their actual economic distributions. –Forbes

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