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Why volatility shouldn’t scare you — even close to retirement

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

Why volatility shouldn’t scare you — even close to retirement
Market volatility should not stop clients from investing for retirement, writes an expert on CNBC. A market correction "only becomes a real risk if investors act on these feelings, making buy and sell decisions to alleviate mental anguish today at the expense of tomorrow," explains the expert. "For most individual investors, the real risk is not saving enough and not having it grow enough to cover future expenses during retirement."

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Traders work on the floor of the New York Stock Exchange (NYSE) during the Pinterest Inc. initial public offering (IPO) in New York, U.S., on Thursday, April 18, 2019. Pinterest's message to investors was don't compare us to social media or a search engine. The outcome Wednesday was that it raised about $1.4 billion in an above-range initial public offering. Photographer: Michael Nagle/Bloomberg

‘Medicare for All’ isn’t Medicare
The "Medicare for All" legislation is misleading, as it would be different from the current program, writes a senior lecturer with MIT Sloan School of Management for The Wall Street Journal. "Medicare for All differs from Medicare in fundamental ways — with much broader coverage, no cost sharing, and fewer choices of health-care plans," writes the expert. "While America needs a debate about health care, it should be based on an accurate description of the alternatives."

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A demonstrator opposed to the Senate Republican health-care holds a sign that reads "Medicare For All" while marching near the U.S. Capitol in Washington, D.C., U.S., on Wednesday, June 28, 2017. Several Senate Republicans began to question today whether their health-care bill should repeal a tax on high-income Americans imposed by Obamacare when the legislation would scale back subsidies for the poor. Photographer: Andrew Harrer/Bloomberg

Tracking down IRA basis: A gold mine for beneficiaries
Clients who consider converting some of their traditional IRA assets into a Roth account should ensure that the IRA basis includes all the after-tax funds that are contributed in the account, writes an expert on Kiplinger. "Tracking IRA basis is necessary to determine accurate taxation of eventual IRA withdrawals," the expert writes. "If basis is not kept track of, then withdrawals that should have been tax free can end up being taxed, meaning these funds will be taxed twice."

Retired people share the secrets of early retirement
Clients need to make a number of considerations before leaving the workplace for good, according to this article on MarketWatch, based on the experiences shared by those who have retired. Clients should not view retirement as a vacation and prepare and plan to keep them busy and evade boredom in the golden years. The thing that people don’t tell you about early retirement is that you still need to find something interesting to do after you retire or you will not be happy,” says a retiree.

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