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

Why you should put your IRA in a trust

Transferring an IRA asset to a trust is a strategy that provides the beneficiaries protection from creditors and divorce, according to this article on MarketWatch. Under this strategy, clients can have control over asset distribution after their death, especially if they want their beneficiaries to spend the wealth in a certain way. However, an IRA trust could have disadvantages, such as hefty costs. –MarketWatch

Proposed Medicare ‘Doc Fix’ comes at a cost to seniors

Congress is poised to pass legislation that would replace a Medicare's Sustainable Growth Rate, which will lower physicians' fees, with a formula that would give incentives to doctors for meeting government standards designed to secure high quality, cost-effective care, according to this article from Reuters. However, the proposal would cost the government $200 billion in a decade, with seniors covering $70 billion based on an estimate. Read how the proposal would mean costs for older people. –Time Money

How to pick the best Medigap policy for you

Clients who consider buying a Medigap policy need to know if they prefer such a policy to Medicare Advantage, according to this article U.S. News & World Report. They also need to weigh their Medigap options and choose based on factors such as risk tolerance and ability to pay. Having such a policy early on and keeping it for the long term will enable clients to save money, while getting help from a broker is recommended since the service is free. –DailyFinance

How Social Security funding affects your retirement

Future retirees may receive reduced benefits as Social Security's trust funds are likely to run out by 2033 because people are expected to live longer and the number of retirees is increasing, according to this article on CNBC. Congress considers proposals to address these concerns but there is no definite direction on what to do to revamp Social Security, making retirement planning for young workers difficult. "Since nobody can guess how Social Security will turn out decades from now, we use planning tools and common sense to frame the discussion with younger people," said a certified financial planner. –CNBC

Social Security Q&A: Can't we file and suspend at 62 due to the family max?

A 41-year-old client and her 61-year-old husband may consider the "Start-Stop-Start" strategy to enable their two young children to collect child benefits and the client to get child-in-care spousal benefit on the husband's record, according to this article on Forbes. The husband will start getting his retirement benefit at age 62 or before he reaches full retirement age. Another option is the "File-and-Suspend" strategy, which allows the husband to apply for benefit at FRA but suspend his benefits until 70 so his spouse and children can collect child-in-care spousal and child benefits on his record. –Forbes

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