New tools can turn clients’ retirement savings into a steady paycheck

Register now

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

New tools can turn your clients’ retirement savings into a steady paycheck
Clients may want to use new technology platforms to develop a sustainable withdrawal sequence and ensure a steady income in retirement, according to an article in CNBC. For example, withdrawals from a tax-deferred account could trigger a hefty tax bill and result in taxation of Social Security benefits and higher Medicare premiums. “Just varying which account you draw down from can find tens of thousands of dollars more for someone,” experts say.

New rule to encourage retirement plans by smaller companies
The Labor Department is poised to release a rule that would make it easier for small businesses to establish a multi-employer 401(k) plan for their workers, according to an article in The Wall Street Journal. The rule would provide more ways for small employers to band together to set up such a plan. For example, similar firms would be allowed to create a joint retirement plan provided they operate in the same state or metropolitan area.

Is a target date fund right for your client?
Retirement savers should know the pros and cons of a target date fund before investing, according to a Kiplinger article. For investors who want to diversify their portfolio and don’t want to rebalance it on their own, a TDF can be a great option, but it is not personalized. Clients also need to consider the risks and the asset allocation in their portfolio before buying a TDF.

7 best IRA accounts for your clients’ investments
Saving in an IRA is a great option for clients, as the tax benefits it offers can help boost their retirement income, according to this Yahoo Finance article. Choosing an IRA account with low fees and several low-cost mutual fund offerings is just as important. Lower fees can boost their overall returns over time, while having many mutual fund options within the account can help investors achieve diversification.

For reprint and licensing requests for this article, click here.
Retirement readiness 401(k) Client communications Client strategies IRAs Small business Target date funds