Our daily roundup of retirement news your clients may be thinking about.
Many Americans fail to include leisure activities in their retirement plan and prepare accordingly for this expense, according to The Motley Fool. When planning for retirement, clients are advised to create a budget for leisure activities after making an estimate of housing, food and other non-negotiable living costs. Clients will need to save aggressively if they intend to plan to have a leisure-filled life in retirement. –The Motley Fool
Clients who plan to change job or get to retirement may opt to cash out the 401(k) assets, leave them in their former employer plan, roll the money over into their new employer's plan or an IRA, according to Forbes. However, they could experience abuses when doing a 401(k) rollover since such an option is not subject to fiduciary standards. Hiring an investment adviser is recommended if clients don't feel confident about doing the rollover themselves. –Forbes
Seniors are advised to take caution when managing and tapping their investment portfolio during the first five years of retirement, which experts consider a very risky phase for retirees, according to CNBC. Clients are advised to minimize the risk in their portfolio when approaching retirement, reducing their stock exposure to as much as 40%. A recommended strategy to cut stock allocation without the hassle of making too many investment choices is to shift to target funds. –CNBC
Seniors who don't want to take traditional retirement route may consider taking a phased retirement or becoming a part-time retiree, according to this article on Yahoo Finance. They may also get a second career, do seasonal work, go back to school or take a sabbatical leave from work. Other alternatives to traditional retirement are to take a mini retirement, focus on a specific project while on a break from work, become an entrepreneur and pursue a hobby job. –Yahoo Finance
