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Why clients may be hit with a Medicare premium surcharge

Most clients think Medicare will cover all of their health-related bills in retirement.

Welcome to Retirement Scan, our daily roundup of retirement news your clients may be talking about.

Why clients may be hit with a surcharge on Medicare premiums
Clients who sold a property, withdrew a hefty amount from a tax-deferred retirement account or completed a Roth IRA conversion can expect an increase in their Medicare Part B premiums, according to this article in the San Francisco Chronicle. That's because these financial moves could push their income above a certain threshold, triggering a surcharge or an income-related monthly adjustment amount. "Someone who did our taxes warned us about the capital gains, but not the huge increase in our Medicare. In my view, that’s another tax on that same money that’s already been taxed,” a client who sold their home says.

Navigating market volatility with clients
Clients are advised to prepare for market volatility, which can put their savings and retirement assets at risk, writes Kelly Lavigne of Allianz Life in Kiplinger. They should monitor the situation, avoid panicking and review their diversification strategy, he says. They should also have protection, while those who are approaching retirement should consider a source of guaranteed income, such as an annuity. "No matter what the market does in the coming months, by partnering with a trusted financial professional, you can build out a strategy that puts you in a good place to navigate market volatility," Lavigne says.

How to get clients money back from an old 401(k) account
Clients who left 401(k) assets with their past employer should consider optimg to retrieve the money even if it is just a small amount, writes an expert in MarketWatch. That’s because these assets could have grown over time due to compounding. “Finding and verifying old 401(k) accounts may seem daunting at first, but a good financial advisor can help you sleuth it out,” the expert says.

At more than twice the price of the average fund, many with the even biggest gains still underperformed the broader market over the last decade.
October 2

Getting clients retirement plan back on track
Clients who lost track of their retirement plan can get back on the rails by recalculating the amount they need to save for retirement, according to this Motley Fool article. They should also make the necessary adjustments, such as delaying retirement and reducing their expenses. Saving aggressively in tax-advantaged investment accounts, such as 401(k)s and IRAs, can also help clients get back on track to secure their retirement.

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