Baby boomers who haven't saved for retirement early can still catch up for lost time, writes a financial adviser on Kiplinger. They may start with creating a realistic budget, determine their estimated income in retirement, and ensure that they own the right investments. Married couples should also account for the impact of death on the surviving spouse, and they should also factor in the hefty cost of health care and long-term care.
With the federal estate tax exemption at a hefty $5.49 million, estate planning appears to be useful only to rich people, but ordinary people stand to gain from it too, according to this article on MarketWatch. One estate planning move that ordinary people will benefit from is to check the beneficiary designations for their life insurance policies, annuities, IRAs and other tax-advantaged retirement accounts.
Clients who want to optimize their retirement income plans are advised to review their investment philosophy, writes Wade Pfau, professor at The American College and principal at McLean Asset Management, on Forbes. They should also assess their investment behaviors to avoid any biases in investing and have the right views on asset allocation and portfolio diversification. Another factor to consider is their ability to maintain their portfolio and make the necessary adjustments over time.
A study shows that more Americans are likely to continue working past the age of 65 in the future, and it will take time for employers and employees to adapt to this trend, according to this article on MarketWatch. “Institutions have not yet caught up with the demographic transitions in society,” says an expert. “Employers are more focused on gradual exits of their workers than retaining or recruiting older people in the workforce.”
