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Why retirees shouldn’t fear a bear market

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

Why retirees shouldn’t fear a bear market
More retirees are concerned about outliving their nest egg than those who are afraid of dying, writes an expert for MarketWatch, citing a survey by Allianz Life. Despite the recent stock market decline, retirement investors should remain hopeful about their prospects, writes the expert. "The reason not to give up hope is that the stock market typically recovers from bear markets in a far shorter period of time than most doom and gloomers think."

IEFA traded about $3.9 billion in value on Tuesday, the most since Jan. 30.
The New York Stock Exchange (NYSE) is reflected in a street vendor's mirror in New York, U.S., on Monday, March 5, 2018. Photographer: Michael Nagle/Bloomberg

Remarried after having kids? Here are tips to avoid accidentally disinheriting them
Older people who are planning to remarry should ensure that they engage in estate planning especially if they have adult children from a previous marriage, according to this article on CNBC. That's because they will be bringing greater retirement and other assets into the marriage, and a conflict between their new spouse and adult children is highly probable if no will and estate plan have been drawn. "You don't want to leave it to the state. It can be a long-drawn-out procedure that no one wants to go through," says a CFP.

Worried you're never going to be able to retire?
Clients could end up not having the things they expected in the golden years if they fail to address the basic threats to their retirement, according to this article from Kiplinger. These threats include the lack of a clear retirement plan, rising health care costs and inflation. Using a too conservative approach to investing and ignoring the risks in the portfolio also pose risks to investors' retirement security.

2 money mistakes I've made (and you can avoid)
Deferring retirement saving is one of the money mistakes that clients should avoid, according to this article on personal finance website Motley Fool. That's because the earlier they start saving and investing for retirement, the bigger they can expect their nest egg to be by the time they retire, as they will give their investments more time to grow. For example, clients who invested $1,000 in an S&P 500 fund can expect the investment to grow to $15,220 in 30 years or $37,720 in 40 years, assuming a 9% to 10% annualized return.

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