Defuse the tax bomb that threatens retirement
Clients who stashed most of their retirement savings in a tax-deferred account such as 401(k)s and traditional IRAs are expected to face a tax bomb after they retire, writes an expert on Kiplinger. To enhance their after-tax income and avoid the tax bite, clients may want to buy a qualified longevity annuity contract using 25% of their 401(k) or IRA savings, or invest some of these funds in a deferred annuity product, writes the expert. They may also put some of their retirement funds in personal savings or home equity.

IRS building
Bloomberg News

Greener 401(k)s choices are popular with employees
Although not many 401(k) plans are offering investments that advocate for nature and the environment, a survey by Natixis has found that a majority of employees prefer options that support those types of causes, according to this article from Newsweek. The survey also found that 74% of respondents would prefer green investments in their 401(k) plans and boost their contributions if these options are offered in their plans. “If all 401(k) plans offered green ratings on funds and education on sustainability, businesses could realize multiple compelling benefits to their employees, their bottom line, and society,” says an expert.

The unsettling truth about women and retirement
A report from the National Institute on Retirement Security shows that women are 80% more likely than men to be poor when they reach the age of 65 and older, according to this article on Forbes. This could be attributed to the wage gap between men and women and the greater social burden placed on female members of the family to look after aging parents and children. Women are more likely to live longer than men, and female workers are more likely than their male counterparts to be hired on a part-time basis. Moreover, retirement also gets tougher for women of color.

The case for moving to a retirement community
A retirement community is a great option for clients in their golden years, writes an expert on MarketWatch. The retirement community is a place where they can enjoy each other’s company and not feel stigmatized by their age, writes the expert. "They had little control in their prior lives, as they were buffeted and occasionally rescued by economic cycles, erratic employers, government policies, health issues, and family problems or successes. Their retirement dream is to migrate to an environment they can control and in which they are valued."

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