Our daily roundup of retirement news your clients may be thinking about.
Clients should consider boosting their savings rate in the event they lose a considerable portion of their retirement assets, according to a Motley Fool article. They should also consider making changes to their retirement plan, such as working longer, reducing their retirement budget and delaying Social Security. Re-evaluating existing investment strategies and getting professional advice are also recommended.
The 4% rule, dynamic withdrawals and the bucket approach are among the popular strategies that you could advise retirees to use when they tap their investment portfolio for income, according to NerdWallet. When creating a retirement withdrawal approach, advisors should help clients factor in the impact of taxes on their withdrawals from traditional IRAs and 401(k) accounts. Setting up a Roth IRA is preferable, as distributions from this account type in retirement will not be subject to income taxes.
Delaying Social Security and taking a pension as an annuity are two strategies clients can use to protect retirement income from market corrections, tax changes and other uncertainties, an expert for Kiplinger writes. Some retirees take advantage of today's low income tax rates by boosting withdrawals from their tax-deferred retirement accounts to reduce their tax bill and future mandatory distributions that could be subject to higher tax rates.
Retirees could sell personal items that they no longer need to earn extra income, according to an article on U.S. News & World Report. Selling household goods can be a good income-generating strategy especially for seniors who decided to downsize or relocate. “Selling your stuff online – from old cellphones you’ve acquired over the years to that record collection collecting dust in your attic – has never been easier,” says an expert.
