Our daily roundup of retirement news your clients may be thinking about.
Seniors who consider relocating in retirement are advised to make a number of considerations before making a decision, according to this article on U.S. News & World Report. Cost of living is key, obviously, but one expert also says that a retiree’s goals and objectives are important. They should account for potential employment opportunities, year-round weather, housing costs as well as health care expenses in the new location. Seniors should also determine how state taxes can change their tax situation. “These can take a big bite out of your budget or offer relief,” says an expert.
Although death is a topic many people would rather avoid, seniors should consider planning for their own funeral, according to this article on MarketWatch. Such a move can minimize the impact of rising funeral costs on their loved ones who are left to face the expenses, avoid future conflict within their families and allow family members to grieve without the burden of making costly decisions. Preplanning their funeral also allows seniors to make their own decisions, such as type of burial, location and preferred funeral. “Emotions are the greatest deterrent to preplanning. People often have the attitude that if they don’t talk about death, it won’t happen,” says an expert.
This time of the year can be a great time for retirees to organize their finances for year's end, according to this article on USA Today. They should consider taking the right amount of required minimum distributions from their tax-deferred retirement accounts to avoid a hefty excise tax and penalties. They may also consider donating their RMD directly to charity through a qualified charitable distribution, which can help reduce their taxable income. Using tax-mitigation strategies such as tax loss harvesting and building a tax-efficient portfolio by funding a Roth IRA are also recommended.
A target-date fund can be a great investment option for 401(k) participants, according to this article on CNBC. "A target-date fund kind of has training wheels to help people make sure they stay upright and are on the right path. That's how they're beneficial," says an expert. However, 401(k) participants who opt for target-date funds are advised to fully invest in the fund, stick to a singular fund, create a retirement plan and avoid high fees.
