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How to achieve diversification on the road to retirement

Retirement couple by bloomberg news
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Welcome to Retirement Scan, our daily roundup of retirement news your clients may be talking about.

How to achieve diversification on the road to retirement
Clients are advised to attain diversification in their investment portfolios to ensure that it can support a longer retirement horizon, writes an expert in Kiplinger. This means having to diversify their risk exposure, whether by holding a variety of investments or by positioning investments to offset risks in the portfolio, he writes. Another strategy to diversify the portfolio is to hold investments in vehicles with different tax treatments, depending on their current and future tax brackets. "Since no one has a crystal ball to predict what will happen, I advise saving money on both sides of the tax fence."

Here are some of retirees’ biggest regrets
Financial advisors say that many of their retired clients regret not grabbing the chance to travel while they still could, according to this article in MarketWatch. Many of these clients also wish they had a plan on how they could find meaning and purpose in retirement before leaving the workplace for good, the experts say. Retirees also regret buying a home and not having a bigger social network, according to the article.

These 5 steps will help clients retire early
Clients who want to retire early are advised to consider the big picture and account for a number of factors, such as their health, life span and retirement goals, according to this article in Motley Fool. They are advised to create a plan based on their financial circumstances, save aggressively and find an effective strategy for investing. Clients need to stay the course and review their retirement plan from time to time.

Top places to retire for the best weather
Portugal and Colombia are among the countries on International Living's list of best locations for retirees who prefer good weather all year, according to this CNBC article. Cost of living in these countries is between $1,030 and $2,720, according to the article. Ecuador, Peru and Mexico are also on the list, with the cost of living in these Latin American countries below $2,000.

Clients are not happy with the industry's app offerings, according to a recent J.D. Power survey.
December 12

Is Social Security keeping up with rising costs?
Although seniors cannot expect their Social Security retirement benefits to keep up with inflation, they should understand that the program is not meant to replace their pre-retirement income in full, writes a Forbes contributor. Social Security's 1.6% cost-of-living adjustment is greater than the average increase over the last 10 years, and retirees have the option to pay their Medicare Part B premiums using their retirement benefits, the expert writes. "While the Social Security program is not without its shortcomings, it is still a valuable resource to provide retirees, disabled, and young children with a modest floor of progressive income."

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