Why target date funds are disliked by financial advisors

While some financial advisors endorse target date funds to manage investment risk, retirement experts think that buying such products is not a smart move because of its drawbacks, according to an article from Mainstreet.com. Target date funds charge higher fees and don't perform well during a financial crisis. As passively-managed funds, these investment options put investments at higher risk, while the one-size-fits-all method behind these products is proven to be ineffective. –DailyFinance

3 great freebies for retirees

Retirees can save considerably by taking advantage of senior discounts available to them, according to this article on Kiplinger. Seniors can go to college without paying any tuition at about 60% of accredited, degree-granting schools across the country. Also retirees can get freebies at pharmacies and receive tax counseling for free from programs funded by the Internal Revenue Service. –Kiplinger

An audacious retirement goal: Upsize your home

Many retirees opt to upsize instead of downsizing their homes to give more room to family members when visiting them and meet special age-dependent housing requirements, such as wider hallways, according to this article on The Motley Fool. They also relocate to expensive locations, such as beaches and skiing communities, to attract loved ones and friends to visit them more often. However, clients are advised to weigh their options before relocating as they may move into a bigger house but no family member will come to visit them. –The Motley Fool

Financial strategies to cover an early or unexpected retirement

Although studies show that people are worried about their retirement prospects, many clients are forced to retire early because of health problems and other major life events, according to this article on Los Angeles Times. Those who need to retire earlier than planned are advised to estimate their cash flow including current expenses and portfolio returns and to tap home equity if necessary, says Michael Goodman, president of New York-based Wealthstream Advisors. They may also look into converting some IRA assets to Roth accounts since they stand to gain from it because of a decline in income, Goodman adds. –Los Angeles Times

Social Security Q&A: Can't I repay multiple years of benefits before 70?

Clients have only one year to return all the monthly retirement benefits they received after filing for benefits to start anew and get an annual increase, according to this article on Forbes. This strategy is recommended if clients want to get a loan on a year's benefits without paying an interest. Clients also have the option to apply for their retirement benefit and suspend it until they turn 70, a move that will enable them to get all their suspended benefits any time before 70 if they need cash. –Forbes

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