Clients should think twice before buying their retirement dream home, an expert at Kiplinger writes. First, the home should suit their preferred lifestyle in retirement as well as into their financial plan. Although the property should allow them to live close to their loved ones, clients should consider how frequently they will actually visit. “It often doesn’t make sense to spend millions of dollars for a large home to accommodate all of these people once or twice a year. It may be wiser — and more fun — to buy a smaller, less expensive place that fits your everyday needs,” the CFP writes. “It will be easier for you, the retiree, to pack up and visit family at their homes.”
Democrats in Congress are proposing the removal of all student debt, but those measures don’t guarantee that more Americans will save for retirement, according to this article from MarketWatch. Many clients argue that cost of living payments have been challenging, even without student loans, a CFP says. However, analyst John Gugle of Alpha Financial Advisors, says clients should find ways to balance payments for student loans and other financial responsibilities, including retirement savings.
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Errors are regrettably common. They are also easily avoidable.
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Military families can use one of these provisions to seriously cut their tax burden. Plus, can clients make an IRA contribution on behalf of a deceased person?
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Financial planners don’t have to be attorneys to help clients avoid high cost oversights
December 24
Clients should take advantage of Roth IRA accounts offered in their workplace retirement plans, according to this article from the Chicago Tribune. While this option is recommended for clients who expect to move to a higher tax bracket in retirement, some experts say a Roth works regardless. That's because even if their tax rates increase, Roth distributions are not subject to income taxes.
Newly retired clients are advised to reduce their housing budget by moving to a smaller home or relocating to places that have lower taxes and cost of living, according to this article from Motley Fool. They are also advised to develop a Social Security strategy, determine how much of their savings to use each year and consider buying long-term care insurance.
Is it acceptable for clients to risk some of their retirement savings to get higher returns? They are advised to determine how much their investments need to earn after they retire, then take no additional risks, an expert writes at Kiplinger. If a client needs more money, they may consider reducing their expenses, working longer or finding another job, according to the expert.
