Welcome to Retirement Scan, our daily roundup of retirement news your clients may be talking about.
These are the finance conversations newlyweds need to have
Newly married couples need to work together as they find ways to handle their expenses and plan for their future goals, according to this Motley Fool article. They are advised to discuss how they will pay their bills, how they will cover their emergency expenses and what insurance they need to have, according to the article. They are advised to also work on their long-term goals, plan and save for retirement together and decide on how they will achieve these goals.
Ways of claiming Social Security benefits early that could work for your clients
Filing for Social Security benefits early can be a better option for seniors if they don’t expect to have a long life span, as filing early means getting more payouts, according to this Kiplinger article. Clients will be better off filing early if it means their spouse will apply for a spousal benefit, according to the article. Those who are anxious about the program’s financial woes may also have peace of mind if they file early.
The realities of freelancing for clients over 50
Around 60% of freelancers aged 65 and above are pleased with how much they work, according to a survey in this MarketWatch article. However, only 48% of those from 50 to 64 are into the kind of work they want, the survey from Freelancers Union and Upwork found. The smaller percentage for freelancers in the 50-64 age bracket, with all the work they want, could be alarming, as it is the period during which retirement saving is crucial, says a professor at Boston College’s School of Social Work.
This is how baby boomers can avoid retirement envy
Retirees need to modify their investing strategy as their circumstances are no longer the same as they were 10 years ago, according to this Forbes article. To do this, clients are advised to put absolute return ahead of relative return, shift to a more secular bear market mindset and determine how the end of the bond bull market will impact their portfolio. They should also understand that the U.S. deficits could happen soon and the new market “players” can affect their retirement goals, according to the article.
The only situations where it ‘makes sense’ to borrow from a 401(k)
Clients should only borrow from their 401(k) if they need to cover a down payment on their first home, pay off high-interest debt or are in a financial setback, according to this CNBC article. Before taking a 401(k) loan, clients are advised to factor in the penalties and fees, and determine whether they can afford to lose out on the tax-deferred growth of their savings, according to the article. The loan will be considered a distribution and trigger an income tax bill and penalty if they leave their jobs and fail to repay the debt within a few months.
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