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Here's what to do if clients need to postpone retirement

Senior clients may consider contributing to a Roth account instead of a traditional retirement account before leaving the workforce for good.
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Welcome to Retirement Scan, our daily roundup of retirement news your clients may be talking about

Here's what to do if clients need to postpone retirement due to coronavirus
Seniors who are one or two years away from retirement may have to postpone their plans especially if their savings have dwindled because of the coronavirus crisis, according to this Motley Fool article. They are advised to also continue building their savings and avoid cashing out their retirement assets even if their investments have dropped in value. By delaying retirement and extending their working years, seniors can also see an increase in their Social Security benefit payouts, according to the article.

Advising clients on using a backdoor Roth IRA
The backdoor strategy is a very attractive option for high-income clients who cannot contribute directly to a Roth IRA because of income limits, according to this article in Yahoo Finance. "Advisors should encourage most of their clients that exceed the contribution income limits to open Roth IRAs through the backdoor process," an expert says. "The benefits of tax-free growth and withdrawals are exceedingly powerful, and the flexibility that comes with Roth IRAs opens multiple estate planning and retirement pathways."

If your clients are close to retirement, this one word makes a difference
A form of hedging known as arbitrage can help pre-retirees manage their investment portfolio amid the volatile market environment, writes a Forbes contributor. "Simply, this is the idea of buying 2 investments that tend to move in the same direction, but at different speeds," he writes. "The goal is to profit from the out-performance of one over the other."

Working from home doesn’t have to mean all work all the time.
March 31

Now is a good time for retirees to refinance
The ongoing market correction is creating an opportunity for retirees to refinance their mortgage, according to this article in Barron's. However, before making any decision they need to make a number of considerations, such as upfront costs and total interest payments over an extended period, according to the article.“If you’re 60, have a mortgage, and are worried about cash flow, the focus should be on reducing the size of your payment,” an expert says.

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