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

Why older Americans are more financially vulnerable
As cognitive ability declines with age, seniors can be vulnerable to financial abuse and fraud that may cost them a lot and hurt their retirement savings, according to this article on DailyFinance. To address this risk, seniors are advised to discuss their plans with their partner, organize their financial data, and update their will and power of attorney documents and ensure these documents are valid in the state where they live. Also, seniors may designate a family member to manage their bills and other finances in case their cognitive ability starts to deteriorate, or they may get a financial adviser or a lawyer to help them.  --DailyFinance

Year-end bonus? 3 smart ways to use it to build wealth
Workers who receive year-end bonuses are advised to put the money in their retirement-savings accounts, according to this article on CBS Moneywatch. "As much as a quarter of year-end bonuses are often taxed, which is offset if you put those funds into a 401(k) or IRA," says Nicole Mayer of Chicago-based Life Transition Specialists. "Plus, if your employer matches year-end bonus contributions, you could immediately grow your bonus by several hundreds of dollars," the financial planner adds.  --CBS Moneywatch

The best way to tap your IRA in retirement
Retirees who need to take their required minimum distribution from their IRAs but are not in need of the money are advised to invest the money in a low-cost index or exchange traded fund, according to this article on Time Money. They may also consider doing a direct rollover to a charity to avoid paying taxes on the withdrawal and get a tax deduction. Another option is to put the money to their grandchildren's 529 college savings plan or use it to open an irrevocable life insurance trust. Buying annuities is not recommended as the risk of outliving the savings no longer exists.  --Time Money

Why 2015 is the year for longevity annuities
Beginning this year workers are allowed to get longevity annuities inside their 401(k) plans and IRAs provided they will start collecting payments when they turn 85, according to this article on Fortune. While annuities guarantee lifetime income, clients can no longer take their money back when they need it and may lose control of their assets, says Stan Haithcock, an expert on annuities. Clients who consider buying longevity annuities are advised to stick to this type of annuities and not be swayed by agents who push variable or index products, Haithcock says.  --Fortune

Retirement: New Year's resolutions for wealth, health
In this article, five prominent experts share their New Year's resolutions that aim to improve their life in retirement. Dallas Salisbury, CEO of the Employee Benefit Research Institute, intends to focus on staying healthy as well as assess his income and spending plan next year. For Eleanor Blayney, consumer advocate for the Certified Financial Planner Board, wants to start 2015 by doing tax planning for the year.  --USA Today

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