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What should clients do amid market volatility — are they 27 or 63?

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

Should you do anything amid market volatility? It depends, are you 27 or 63
Investors have to turn to their own timeline before making any changes to their portfolio during a market correction, according to this article on CNBC. "If you have 40 years left to invest, a bear market right now is just noise and should be ignored; in fact, often celebrated," says a certified financial planner. However, a “stock market crash that starts the day after you retire can cause a permanent lifestyle impact if all your money is invested there."

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Retirement today doesn't come as easily as it did in past decades
Retirement saving has become more challenging compared to the years before the shift from defined benefit pension plans to 401(k) plans, writes an expert for Kiplinger. "The change has introduced variables to retirement planning that were never part of the equation for the retirees of yesteryear...," writes the expert. "It has never been more important for workers to understand how the landscape has changed — and how to adjust their planning in order to meet individual retirement goals."

The case against having a bond-heavy retirement account
Holding bonds in tax-sheltered retirement accounts such as IRA no longer means getting big tax advantages, writes an expert on The Wall Street Journal. Instead, investors should consider actively managed REIT or small-cap equity fund, which can yield greater returns and thus a larger tax bill, writes the expert. "That is why it makes sense to hold them in a tax-deferred, tax-exempt and tax-sheltered account like a 401(k), IRA or Roth IRA, where investments grow free of taxes."

The IRS just made it easier to save for retirement. Here's how to take advantage
The increase in contribution limits for retirement accounts such as 401(k)s and IRAs may not seem to be that much but it could help investors save considerably over time, according to this article from Money. For example, clients who start saving at age 30 and retire at 67 can expect $134,000 more in retirement funds if they boost their contributions by $1,000 per year at a 6% return, says an expert.

This one question can let retirees save on prescription drug costs
An expert says that retirees can avoid overcharges in their insurer's copay for prescription drugs and get a better deal by working with a pharmacist, according to this article on MarketWatch. "The insurance company and the pharmacy company are separate entities, and each one is paying and charging different prices for the same medications," explains the expert. "Insurance companies set the patients’ copayments, but the price the pharmacy pays to purchase the medication can be lower depending on the insurance plan.

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