IRAs

Although annuities incur taxes and costs, clients "can invest the same amount into a diversified municipal bond portfolio and pay no taxes,” an expert says.

Elderly clients should make sure they have enough fixed-income in their retirement portfolios to spin off cash to cover the gap between income and expenses until the market recovers.

A Roth IRA is an excellent savings vehicle for older people as it is for younger clients.

Life changes, like a child entering college or changes made to retirement goals, can leave serious gaps in financial plans.

It pays to review the differences between traditional and Roth IRAs.

The Roth IRA has very low contribution limits, while those in high-income groups may not qualify to contribute to the account.

The retirement problem comes down to the fact that many people don't have access to a 401(k) plan. Here's one solution.

Clients aged 35 have to set aside 11.69% of their pay to keep up with those in their 20s socking away only 6% of their salary, based on calculations by Financial Engines.

Combating these misconceptions may help taxpayers maximize benefits.

These funds can be expensive and may not be accurate in determining investors' risk tolerance, among other potentail downfalls.