Our daily roundup of retirement news your clients may be thinking about.
4 ways to rebound after a market correction
While a market correction is beyond anybody's control, clients have the ability to take other steps that can curb market volatility's impact on their investment portfolio, according to this article on Forbes. Clients are advised to assess their investment allocation every year and raise their retirement savings rate. They also need to invest in retirement saving vehicles other than 401(k) plan and consider adopting the "dollar-cost-averaging" strategy as an approach to investing. --Forbes
The biggest reason workers don’t save for retirement
Only half of American workers are saving for retirement through their workplace, mostly because many employers do not offer savings plans like a 401(k), according to the Government Accountability Office. Of those who aren’t currently saving through their employer, 68% work for an employer that doesn’t offer a plan. The remaining 32% is split evenly between those who are not eligible to participate in their workplace program and those who could participate but choose not to, according to the GAO report. --The Wall Street Journal
How to avoid portfolio performance envy
Investors are advised to avoid oversimplifying the evaluation of their investments by comparing their overall returns to the results to the S&P 500 or other indexes that are associated with investing success, according to this article in MarketWatch. They should bear in mind that they invest to secure their retirement and not to beat the market. Comparing their investment results with these indexes may prompt them to make changes to their portfolio and these changes may not be attuned to their investment goals. --MarketWatch
Medicare drug plan prices set to rise in 2016, some by a lot
An analysis by Avalere Health consultancy found that premiums are expected to increase 8% for more than 15 million Americans enrolled in the top 10 Medicare "Part D" prescription drug plans, according to this article on CNBC. "Medicare beneficiaries should carefully review their prescription drug plan options in 2016. ... With many plans taking large premium increases in 2016, those beneficiaries that choose not to change plans will likely pay more in premiums than if they look for lower-cost options," says Avelere's Colin Shannon. --CNBC
SEP IRA rules
A SEP IRA offers an opportunity for self-employed clients and small business owners to help themselves and their workers save and invest for retirement, according to this article on The Motley Fool. Clients can expect tax-deferred growth in the value of the account in the long term, with no capital gains taxes on the sale of securities in the year the deal is closed, although withdrawals in retirement will be subject to income tax. Compared with a 401(k) plan that has a limited investment menu, a SEP IRA offers a broader range of investment options. --The Motley Fool
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