Retirement planning can be complicated — client portfolios shouldn’t

Register now

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

Kimber Johnson is executive vice president of strategic alliances at Giact.
10h ago
The agency finalized plans to stop the temporary procedures for Forms 1045 and 1139.
October 19
2 Min Read
Neil Vaswani co-founded leading voluntary benefits innovator Corestream in 2006. The platform enables top brands to build more engaging relationships with their employees, becoming an integral part of protecting and enhancing employee wellness.
October 19

Retirement planning can be complicated — client portfolios shouldn’t be
Although planning for retirement can be complicated, seniors are advised to keep their investment portfolios as simple as possible, writes Morningstar’s Christine Benz. For example, clients should combine multiple tax-deferred retirement accounts such as traditional IRAs and 401(k)s into a single account, she writes. “Employing a single provider for all of these accounts can also greatly simplify your oversight and record-keeping responsibilities,” according to Benz.

Why clients need a sustainable distribution strategy
While saving for retirement is necessary to secure retirement, creating a sustainable distribution strategy is just as important, a Forbes contributor writes. “The decisions you make as you enter retirement are key and can make or break your retirement success,” the expert writes, adding that one reason is clients “no longer will have earned income and the safety of getting a paycheck every couple of weeks” deposited into their accounts.

How will clients’ Social Security benefits be taxed in retirement?
Seniors can expect a portion of their Social Security benefits to be subject to federal income taxes if their combined income exceeds a certain threshold, according to an article from Motley Fool. The combined income is their annual earnings plus 50% of their retirement benefits. For example, half of the benefits will be taxed if the combined income is between $25,000 and $34,000 for individuals, or between $32,000 and $44,000 for joint filers.

The 10 best states for clients to retire
Virginia and Colorado are among the most-appealing locations for retirees to spend their golden years, due in part to top scores in affordability, health-related factors and overall quality of life.

Why annuities should be part of clients’ retirement pension
Holding annuities as part of the retirement income strategy can be a smart strategy for clients to secure their stability in retirement, writes an expert in MarketWatch. These products “often get a bad rap for high fees, surrender charges, and complexity, but certain kinds of annuities can give you steady, pension-like income or insure against your running out of money if you wind up living longer than you expect,” according to the expert.

For reprint and licensing requests for this article, click here.
IRAs 401(k) Retirement planning Retirement income Social Security benefits Income taxes Annuities Pensions Portfolio management
MORE FROM FINANCIAL PLANNING