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

Why retirees need to stop writing checks to charities

Retirees are now allowed to make charitable donation by transferring money directly to a qualified nonprofit organization from their IRAs under the Consolidated Appropriations Act of 2016, according to Forbes. The donations will be counted towards their required minimum distributions for the year and the withdrawals will be deducted from their taxable income. This means the move could lower retirees' adjusted gross income and enable them to avoid having a bigger portion of their Social Security benefits taxed and bigger Medicare Part B & D premiums, among other things. –Forbes

How clients can get guaranteed retirement income for life

Clients stand to gain more from an annuity than investing the money elsewhere, according to CNNMoney. When buying an annuity, clients are guaranteed an income in retirement as long as they live despite market conditions. Also, income payouts from annuity tend to increase into retirement because of "mortality credits," which enable insurers to give the money that could have gone to deceased annuity holders to those who still live and are receiving income. –CNNMoney

How to diversify clients' retirement income portfolio

Diversifying retirement income portfolio is a move that will help retirees ensure they won't outlive their nest egg, according to CBS Moneywatch. To achieve this, clients need to have a guaranteed lifetime income floor that includes Social Security and annuities to secure their living cost, and invest some savings for their discretionary expenses. They may also work part-time after retiring to earn extra income and consider investing in real estate for rental income. Those with small 401(k) and IRA savings may also look at a reverse mortgage for additional income. –CBS Moneywatch

This piece of conventional wisdom saved me a bundle

Retirement investors will be better off selling amid a market decline if they intend to fund a major financial obligation this year, according to Money. But for retirees who reach the age of 70 1/2, they need to take required minimum distributions from their retirement accounts. Whether stock prices rise or go south, retirees need to liquidate their shares for the RMD and enjoy their savings in their golden years, which this is the goal of retirement investing. –Money

Inheriting a Roth IRA isn't always best news

Although most people prefer leaving a Roth IRA inheritance to loved ones so that the distribution will be tax-free, such a move may not always be a smart move, according to USA Today. It's because the upfront taxes that clients pay to contribute to a Roth can be bigger than the tax burden that beneficiaries pay when receiving the bequest. –USA Today

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