Steps to help millennial clients lay a financial foundation
Welcome to Retirement Scan, our daily roundup of retirement news your clients may be talking about.
Half of millennials invest, and the other half can join them
Investing is easier than millennial clients may think, according to this NerdWallet article. To join the half of millennials who do invest, these clients can lay a financial foundation in a few steps, an expert says. Before investing, clients can begin paying down high-interest debts and building up an emergency fund, the CFP says. Their first investments should be for their retirement in 401(k) and IRA plans. After that, it's acceptable for them to invest in individual stocks or use a robo advisor that builds their portfolio, according to the CFP.
A lump-sum distribution for net unrealized appreciation on employer stock can slash a tax bill in half, but there’s plenty of fine print.May 28
The custodian expects the business to grow quicker in different hands, according to an internal memo.April 17
A quick summer checkup for 401(k) plans
Summer is a great time for clients to review their 401(k) plans, according to this article in Money. Clients are advised to check whether their portfolio is overweight in stocks, and to rebalance, if necessary. It is also worth revisiting their tax brackets in light of the 2017 tax law. If clients lower their taxable income through higher 401(k) contributions, they may be able to drop a bracket, the article says.
5 ways clients can lower household spending in retirement
Moving to a fixed income can be frustrating for clients used to fewer constraints on their budget. But with some lifestyle adjustments, they can stretch their money while still doing what they love, according to this Motley Fool article. Moving to a smaller home saves on energy costs, property taxes and mortgage payments. Driving just one vehicle can cut thousands of dollars from their budget, the article says. Cooking more meals at home and exercising outdoors, instead of paying a gym membership, are two ways clients can live healthier and save. Entertainment and culture can also be affordable. Many parks, museums and events are free, the article says.
Survivor benefits can bridge clients until retirement — at a cost
By taking a survivor's benefit at age 62, a client will be paid at that benefit level even if they retire at age 65, according to Forbes columnist Laurence Kotlikoff. Clients who wait until age 65 to claim their benefit will receive a higher amount, and those who do not retire until they are 70 years old will get an even higher payout, according to the article.