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

Saving in a post-Brexit world

Although Britain's vote to leave the European Union may elicit an overreaction from the stock market, retirement investors should remain calm. They have a major advantage over professional money managers as they are not trying to hedge against the declining pound or unwind derivative bets. They can simply keep saving for the long-term in a low-cost, diversified portfolio. That may be easier said than done, however savers should understand that stocks offer better returns over the long-term than other investment options. They also need to revisit their asset allocation and take the reins on things they can control. — Money

(Image: Bloomberg News)
(Image: Bloomberg News)

Challenges to achieving retirement security

One of the challenges to securing retirement for many people is that they have no access to workplace retirement plans, according to a report from the Bipartisan Policy Center. Many people forced to tap into their retirement accounts because they have no emergency funds are likely to outlive their nest egg and tend to underutilize their home equity after they retire, the report says. Lack of knowledge about retirement and personal finance management hinders many people from securing their golden years. At the same time, Social Security faces financial woes that need to be fixed, the BPC adds. — CBS Moneywatch

Nonprofit work after retirement? Maybe you can make it pay

Seniors who are getting close to retirement tend to embark on a second career to pursue a more meaningful life, and many of them are drawn to nonprofit work, which allows them to work on social issues and promote arts and culture, according to this article on The New York Times. “People want to give back; they want that social impact in the next phase of their life,” says a career and leadership coach. “They also turn the three-legged retirement stool — Social Security, personal savings and retirement savings — into a four-legged stool by adding paid work.” — The New York Times

Taking the first required minimum distribution

Retirees are allowed to take the first required minimum distribution from their traditional IRA anytime during the calendar year in which they turn 70 1/2, according to this article on Kiplinger. This means they can take their first RMD before turning 70 1/2 during 2016 as long as the distribution is made within the year. However, those who intend to donate their RMD directly from their IRA to charity need to wait until they reach 70 1/2 before making the tax-free donation. — Kiplinger

Tips for divvying up your clients' retirement investments

401(k) participants should strive to have a low-cost, diversified investment portfolio with the help of their human resources department or their plan manager, according to this article on Los Angeles Times. They may also get help from free software to determine their target asset allocation, and they should re-balance their portfolio once a year. 401(k) plans usually offer a 60% stock-40% bond asset allocation, while target-date funds are good candidates for their portfolio. Clients are advised to keep their costs low, as hefty fees could eat a big amount of their retirement money. —Los Angeles Times