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

How millennials can save the world while saving for retirement
Impact investing is a strategy that millennial investors may consider to support ESG companies while preparing for retirement, according to an expert at Nasdaq. Such strategies could motivate these clients to boost their retirement contributions as more 401(k) plans are expected to offer impact investment following new guidance measures issued by the Department of Labor last year, the expert said. "Combining your passion for social and environmental causes with the need to build for your future could give new energy to your retirement planning-and that applies whether you're a millennial, a Gen Xer, a boomer or any age."

A maintenance worker cleans solar panels at a power station in New Delhi, India.
Supporting ESG companies could motivate millennial clients to boost their retirement contributions, an expert suggests. Bloomberg News

Planning to tap your 401(k) for a home down payment? It may not be so easy
Although borrowing from a 401(k) plan to fund a home down payment is an option, some employers tighten the rules and impose restrictions that make it difficult for their workers to obtain the loan, the Chicago Tribune reports. “Employers can limit the amount that can be borrowed and they can have their own rules around loans,” says an expert with the Plan Sponsor Council of America. “They can limit the number of loans per year, put a percentage of assets cap on it, as well as set the interest rates.”

Why you should invest your tax refund in a Roth IRA
For clients who want to put their tax refund to good use, investing the money in a Roth IRA is a great option, according to this article on Kiplinger. They can contribute up to $5,500 ($6,500 if they are 50 or older) if their income does not exceed a certain threshold. They have the option to make the contributions in their unemployed spouse's name, while high earners can put the money in a traditional IRA and then do a Roth conversion to transfer the funds.

Calculating your 'magic number' — a fool's errand
Clients engaged in retirement planning often want to know how much they need to save to comfortably enter their decumulation phase, however setting a target figure is of little use, a career planner writes with Forbes. Retirement planning is a process in itself and "there's no magic number," the expert writes. "The alternative to the magic number is an ongoing relationship with an experienced planner who has assisted others down this road, and can help you navigate its twists and turns."

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Top performers: Target-date funds 2000-2015
Which funds that already reached their target year have had the best five-year returns?

3 reasons not to fear retirement
Some anxiety clients face about retirement may be unfounded, as they could have more income sources than they thought to cover their needs through the golden years, according to a Yahoo Finance article. Contrary to what's been suggested, future retirees would still receive their Social Security and Medicare benefits, although the benefits could be reduced if there is no action from Congress to fix the programs. Moreover, many now have IRAs and 401(k) plans that can provide income after they retire aside from Social Security and pension benefits.

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