Welcome to Retirement Scan, our daily roundup of retirement news your clients may be talking about.
Clients should not think that their retirement or financial plan will turn out the way they expected, as it could be based on wrong assumptions or factors that have changed over time, according to a Forbes contributor. “In a complete retirement plan, you’d consider factors that are likely to differ from what you put in the assumption,” the expert writes. “Then, consider the adjustments you might make to the plan after concluding a factor isn’t going to develop as expected.”
A Roth IRA is a great savings vehicle for children who are earning an income, according to this article from TheStreet. That’s because they are in a lower tax bracket, which means that they will owe less in taxes on the contributions than when they grow old and move to a lower tax bracket. Clients can also take distributions from a Roth IRA at any time without penalties, and withdrawals will not be subject to income taxes in retirement.
Retirement income planning is more challenging for wealthy clients, as they will have to face more financial considerations and obstacles, writes a Forbes contributor. “Wealthy retirees may be considering the implications of gift and estate taxes, they may own special assets (such as low basis, high-value closely-held businesses), and they often have issues regarding gifting and charitable donations,” the contributor writes. “The wealthy don’t necessarily have different retirement drawdown issues; they have additional issues.”
Certain locations can help clients maintain their lifestyles — or even improve them.
Clients should not wait until retirement to consider downsizing, according to this article in MarketWatch. “Don’t wait for a death, divorce or debt to occur,” says an expert. “Taking action now means more space, more freedom and more money.”
