Retirement scan

Clients are advised to minimize spending and tap possible sources of cash and credit, including their tax refund.

Market plunges are normal and stocks are likely to recover and earn a positive return over the long term, says an expert.

“I don’t think the volatility will be over until we’re finished with this virus,” one RIA says.

“Having retirement assets in both traditional and Roth accounts can help clients hedge their tax bets for retirement,” an expert says.

Clients are advised to keep some of their savings in cash and focus on their long-term prospects.

Retirees tapping their long-term savings accounts for income in an emergency are advised to strongly consider reducing their withdrawal rates.

While younger clients may be putting away more money than Gen Xers and baby boomers, they’re not better prepared for retirement compared with their older counterparts, experts say.

These retirement vehicles can be less complex and cheaper than alternatives.

“Find ways to generate income,” says one financial planner.

While some retirees have seen a substantial increase in spending, many others are enjoying financial freedom.

To ensure their investments stretch as long as they live, clients are advised to develop a sustainable withdrawal plan and consider annuities.

Mutual funds and ETFs are often created with lopsided or unequal allocations toward certain sectors of the economy, experts warn.

Aside from refinancing, retirees are advised to consider downsizing their homes to reduce overall spending.

To start, these clients are advised to start saving as early and contribute enough to their 401(k)s to qualify for their employer's matching contribution.

“It is really as important for plans to get people thinking about income rather than just accumulation,” an expert says.

One of these snags is taxation on clients’ retirement income, which can hurt their cash flow.

More than a quarter of women in a recent survey say they are confident they will comfortably retire, while almost a third of men voiced the same confidence.

Filing at the wrong age and failing to take advantage of programs like spousal and survivor benefits are just a few common mistakes seniors make.

Older clients who have lost a job prior to retirement are advised to first consider filing for unemployment insurance and begin making revisions to their budget.

Aside from income taxes, retirees will also pay consumer taxes and may face a 3.8% Medicare surtax.