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The bull market could ruin your retirement

Our daily roundup of retirement news your clients may be thinking about.

The bull market could ruin your retirement
Retirement investors who have gained from the long bull market should consider strategies to protect their portfolios from a possible correction, according to this article on Bloomberg Businessweek. Trying to time the market is a “fool’s game,” according to the article, but preparing for a possible downturn as retirement approaches can be a smart move. After all, it notes that no bull market goes on forever. Since 2009, returns on the S&P 500 have averaged about 15% annually, vs. 10% over the past 90 years. Moreover, Morningstar is forecasting virtually no gains for U.S. stocks over the next decade, after adjusting for inflation. Possible strategies for older workers include buying annuities, shifting from equities to bonds and cash, and using the "bucket" approach. They should also have a plan in place in case they will be forced to retire earlier than expected.

Wall Street bull bronze sculpture
The famous bull sculpture stands near Wall Street in New York, U.S., on Friday, Feb. 12, 2016. U.S. stocks halted a five-day slide that dragged global equities into a bear market, as oil rebounded from a 12-year low and bank shares surged. Photographer: Michael Nagle/Bloomberg

Women are losing sleep over this retirement savings fear
More than 70% of women polled by the Nationwide Retirement Institute voiced concern about having enough savings to cover their long-term care costs, according to this article on CNBC. To create a good plan, women are advised to discuss the matter with their spouses and children, consult a financial advisor and designate a trusted individual to ensure that their medical needs will be adequately addressed. It is also important that the plan also accounts for the small detains, such as medications and allergies.

3 easy ways to invest for retirement — then relax
Investing in a target-date fund is one of the easy strategies for clients to invest for retirement, writes an expert on MarketWatch. Other stress-free ways to invest for retirement are allocating assets in a broad-based index mutual fund and using a robo advisor. "When choosing a robo advisor, make sure the company offers the account type you need — say, a Roth IRA — and has an account minimum that fits your needs."

Why these teachers' retirement plans aren't making the grade
Although teachers can build their nest egg via a 403(b) plan, they are advised to consider other savings accounts, such as a Roth IRA or other state government plans, according to this article on CNBC. That's because 403(b)'s annual fees can go as much as 2.5% because the plan is not subject to federal protection. ""You can go out and find some pretty egregious public school plans. Because public schools by their nature are small, they don't get a lot of attention from plaintiff's attorneys, who will justify damages," says an expert.

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