Financial success requires sacrifice
Americans need to take some personal sacrifice to help the government address the country's savings crisis, according to this article on MarketWatch. Government leaders cannot provide a solution to this financial problem, which is compounded by people's consumerism and personal and college education debts. The time has come for people "to emphasize savings and our government to support and encourage it," according to the article. Individuals need to save 5% to 10% more of their income. Such personal sacrifice is far from unprecedented. In fact, the overall level of sacrifice needed today pales in comparison to that needed during and immediately after WWII. --MarketWatch
How clients can form a retirement village in their community
People can make their own communities more a retirement village to address their financial security during their golden years, according to this article in U.S. News & World Report. A group called the Village-to-Village Network is hoping to fill some of those voids and create a way for older Americans to create a stronger sense of community. People are advised to know available services in their community and conduct organizational meetings. They also need to determine the talents within their group, the services to offer and those who will provide these services, seek discounts from service providers in the community, form a nonprofit and prepare a business plan, and promote the initiative. --Yahoo Finance
Heres how Greece could affect your client's retirement savings
Greece may have to exit the Euro currency if it's unable to strike a last-minute deal with creditors and subsequently defaults on its bond repayments. There are worries as to how this will impact the U.S. economy, according to this article on Time Money, although retirement investors can expect the effects of "Grexit" on their 401(k) and IRA investments to be "short-lived." Even if the impact is worse than expected initially, history suggests that clients who continue investing during the downturn will recover their investments faster that they estimated. --Time Money
Social Security Q&A: What are the filing options after being on child disability?
A worker who is collecting child disability benefits on his stepmother's Social Security record will get a survivor's benefit equivalent to 75% of his father's or stepmother's benefit if either of them dies, according to this article on Forbes. The client cannot receive two or more benefits at the same time, so he needs to make sure that he receives steady income before giving up his disability benefits, since it is irreversible. He will receive a little over $1,000 in full retirement benefit starting age 65 if his monthly income is $1,000. --Forbes
Why your client's next dollar shouldn't go to their 401(k)
Aside from a 401(k) plan, a health savings account is another vehicle for people to save for retirement, according to this article on CNNMoney. Contributions to an HSA are not subject to tax, while withdrawals from the account are also tax-free. Clients who qualify to open an HSA are those who have a high-deductible health plan. --CNNMoney
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