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Why clients need a retirement income distribution strategy

Retirement Scan 10/4

Welcome to Retirement Scan, our daily roundup of retirement news your clients may be talking about.

Why clients need a retirement income distribution strategy
Just like saving money is necessary to secure a client’s retirement, developing a sustainable distribution strategy is just as important, according to a Forbes contributor. “Creating a sustainable retirement income distribution plan when you retire is paramount,” the expert writes. “The decisions you make as you enter retirement are key and can make or break your retirement success.”

Women, marriage and retirement risk
Retirement risk is greater for married women than single women, according to a study in this article from Morningstar. “The big issue here is being able to maintain your standard of living in retirement,” says a researcher from the Boston College Center for Retirement Research study. “It’s true that single women are more likely to find themselves living in poverty, but ... married women tend to be less prepared, because of the need to replace two incomes.”

Mistakes to avoid when borrowing from a 401(k)
It is a misconception that clients who consider taking a 401(k) loan are selecting the best option, according to this Motley Fool. They are advised to avoid using their 401(k) loan to repay credit card debt, as it will encourage overspending. Delaying retirement savings until the debt is repaid is also a mistake, as they will miss out on the opportunity to grow their money in a tax-advantaged way.

Double-digit gains produced by the mutual funds and ETFs with the most AUM were not enough to best the broader market.
November 20

Protecting clients’ savings if they — or a family member — require long-term care
Clients from families with longer life spans are advised to consider buying an appropriate insurance policy to cover the cost of long-term care, according to this article in MarketWatch. The earlier they get the coverage, the lower the premiums they will pay. LTC premiums may be tax-deductible, and the insurance benefits will not be subject to federal income taxes.

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