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How gig economy clients can save for retirement

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

How gig economy workers can save for retirement
Clients who work in the gig economy can open retirement accounts with tax-deductible contributions and tax-free investment growth, according to this article in CBS Moneywatch. In addition to traditional and Roth accounts, self-employed clients can open a simplified employee pension. Self-employed 401(k) profit-sharing plans are another option, the article says.

Uber,part-time job-bloomberg.jpg
An Uber Technologies Inc. logo sits on a smartphone display in this arranged photograph in London, U.K., on Friday, Dec. 22, 2017. Uber will be regulated in European Union countries as a transport company after the bloc's top court rejected its claim to be a digital service provider, a decision that could increase legal risks for other gig-economy companies including Airbnb. Photographer: Chris J. Ratcliffe/Bloomberg

Should clients be worried about Social Security going bankrupt?
Stock market performance and inflation are far greater threats to clients' retirement than the solvency of Social Security, an expert writes in MarketWatch. "There is nothing about Social Security’s finances today that hasn’t been known for decades," writes columnist Mark Hulbert.

This could be the time for retirees to lock in an interest rate for their cash
Rates for three-year CDs began dipping earlier this year. However, clients may still be able to lock in favorable rates from smaller banks and credit unions, which often wait longer to adjust their CDs, according to this MarketWatch article.

The Secure Act may flood your 401(k) with annuities. Here’s what you should know
Just 9% of companies offer annuities in their 401(k) plans, but that might change if the Senate passes the federal Secure Act , according to this CNBC article. The bill would protect employers from liability when an annuity fails, removing a barrier to offering them in plans. However it would increase the need for clients to know how their contracts work. For example, annuity payments aren't subject to income tax — but only if the contract was bought with after-tax money.

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