Welcome to Retirement Scan, our daily roundup of retirement news your clients may be talking about.
Many Americans do not have a financial plan, a will, an advanced directive, a power of attorney or all of these financial planning tools, according to a survey in this MarketWatch article. These tools are essential for clients to plan effectively for their financial future, the expert says. “Making these plans now — for your intentional life, your financial future and beyond — will help you accomplish your dreams and ease the burden on your loved ones.”
Four metropolitan areas in Florida and two urban centers in North Carolina made it to the list of the best retirement locations in the U.S. for 2020, according to this article in U.S. News & World Report. The ranking is based on factors that include housing affordability, desirability, health care and overall happiness. “Deciding where to retire is an important part of your life plan,” according to an expert. “When considering potential retirement spots, you should look for an affordable cost of living, proximity to health care services and a strong economy, especially if you plan to work part- time.”
Not saving enough is one of the common money mistakes that millennials should avoid to secure retirement, writes a CFP in Kiplinger. To do this, they should start saving as early as they can, take advantage of their employer’s 401(k) match and boost their savings in 401(k)s, IRAs and taxable brokerage accounts, the expert says. “The longer your invested money has a chance to grow and compound, the larger your savings will likely be, and that can mean a nicer — and sooner — retirement.”
Certain locations can help clients maintain their lifestyles — or even improve them.
Out-of-pocket health care expenses in retirement could amount to about $296,000 for the average 65-year-old couple a report from Bank of America shows in this Motley Fool article. This means that many seniors may not have enough savings to cover these rising health care costs. Clients need to boost their savings in retirement accounts, such as 401(k)s and IRAs, and consider contributing to an HSA, which offers triple tax benefits-pre-tax contributions, tax-free growth on investments, and tax-exempt withdrawals for qualified expenses.
