Where to hide from market volatility if clients are about to retire: Retirement Scan
Our daily roundup of retirement news your clients may be thinking about.
If you're close to retirement, here's where to hide from market volatility
Investors who are approaching or in retirement are advised to liquidate some assets or transfer them to certificates of deposit and money market funds, according to this article on CNBC. "As long as you don't panic, all you need to worry about is the money you'll need for the next three to four years," says an expert. "Let the rest ride."
Your tax questions, answered: Can I still use the IRA qualified charitable distribution?
The rules for taking qualified charitable distribution from IRAs remain the same under the new tax law, according to this Q-and-A article on Motley Fool. "[I]nstead of taking the money out of your IRA and paying taxes, and then donating to get a deduction, it just goes straight to the charity and you don't have to worry about paying taxes on a withdrawal."
Put a student on the path to retirement without hurting financial aid
Contributing to a student's Roth IRA enables parents or grandparents to teach the child the value of retirement saving, according to this article on Kiplinger. However, they should consider the timing especially if the child intends to apply for federal financial aid. That's because their contributions will be considered student income in the year the contributions are made. The student will have to cover 50 cents of the college cost for every $1 he or she earns more than the income limit, which is about $6,570.
What we don't know — but should — about assisted living facilities
Clients have an option of putting their loved one with special needs in an assisted living facility to give them the care and services he or she needs, writes an expert on Forbes. However, they should do due diligence when finding the right facility for their loved one, as these facilities are regulated only at the state level and the regulations vary among the states, writes the expert. "Less regulation ... may also put residents in financial and personal danger. And, as the GAO implies, can put taxpayer dollars at risk for care that may be poor, or worse."
Don’t freak out about the stock market or your 401(k) — do these 5 things instead
Investors, especially the younger ones, are advised to remain calm and keep their portfolio intact in the face of market volatility, according to this article on MarketWatch. That's because it is hard to predict the market levels when they retire and start drawing from their 401(k) and other retirement accounts, says an expert. Instead, clients should engage in worthwhile activities or even look for a part-time job to keep them distracted from the market.