70 is the new 65 for retirement

70 is the new 65 for retirement
Among workers age 60 and older, 50% intend to wait until they turn 70 to retire, or have no plans to retire at all, according to this article from CBS Moneywatch. More people decide to leave the workplace for good past the traditional retirement age, as the average life span is increasing. Working past the retirement age can be a smart decision, as it would allow people to delay and boost their Social Security benefits, continue getting health insurance from their employer, and remain physically fit and socially engaged.

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Should you use your retirement savings to pay for kids’ college?
Tapping retirement accounts to fund a child's college education expenses can be a bad move, although experts say that making minimal withdrawals won't hurt as long as people don't drain their savings, according to this article on MarketWatch. While young people can take student loans to cover their educations costs, there are no loans available for people to fund their retirement, experts say. “If you take out a significant portion of your 401(k) or IRA funds at an advanced age, you have less time to replenish, and if you come up short of funds at retirement, you have fewer options,” says an expert.

How to make smart choices for your 401(k) at retirement
Although transferring 401(k) assets to an IRA could be a wise move, retirees are advised to compare their employer-sponsored retirement plan and an IRA first, as the 401(k) plan offers better options, according to this article from Money. Rolling the 401(k) funds into an IRA is recommended if the latter offers greater flexibility when it comes to withdrawals. The article also suggests choosing a fiduciary when hiring a financial planner. "They're the ones you can trust to be looking out for your best interest," says an analyst.

Try mental accounting to make your retirement dreams come true
An income strategist with TIAA recommends using mental accounting to help people achieve their retirement goals, according to this article on USA Today. “This framework enables a 30-year-old to quickly see if they are saving enough to enjoy hobbies in retirement or if they will be just scraping by,” the expert explains. “The insight offered by mental accounting can be powerful since it gives people time to adjust their savings to meet their needs.”

This flawed advice could doom your retirement
While passive investing retirees better liquidity, clients who hold on to bonds could miss out on greater gains and would be forced to sell these investments during a market downturn, according to this article on Forbes. Investors should look for closed-end funds that offer high dividends, as these investments would be good for their liquid position, preventing investors from selling assets during bear market conditions. "A combination of strategies keeping liquidity and long-term returns in mind is your best bet for a comfortable retirement," the article concludes.

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