Our daily roundup of retirement news your clients may be thinking about.

How a simple two-fund portfolio can boost your retirement returns
Large-cap value and small-cap value funds can boost retirement returns, according to this article on Marketwatch. An expert provides a detailed comparison of S&P 500 performance using data from 1928 to 2015 and compared standard deviations of a four-fund portfolio with a two-fund portfolio. He recommends a two-fund portfolio to young investors as it outperformed S&P 500 in the period covered and is likely to continue doing so.

Image: Bloomberg
Image: Bloomberg

Bus the retirement myth and get back to work—your way
Retirement is now seen as an opportunity for retirees to reinvent themselves by leveraging a lifetime of skills to do something new, according to this article on The Motley Fool. Data show that a quarter of people age 44 to 70 are interested in becoming entrepreneurs, and 63% of Americans plan on working during retirement. To start a business or pick up a new career, one has to consider the kind of service or product the market needs but is not already being filled.

Give your health-care coverage a checkup before retirement
Medical expenses should be a key line item in any retirement plan, according to this article on CNBC. Data show that a 65-year-old couple retiring this year needs about $260,000 for health-care costs during their retirement, but that figure does not include long-term care. It’s important to evaluate the options available for Medicare. One should sign up for Medicare three months from turning 65 and up to three months after, to avoid higher premiums on Medicare Part B.

The one-second retirement plan
Comprised of only one holding, a one-second retirement plan is a low-cost, low-activity, and low-volatility plan, according to this article on Forbes. An AT&T investor with $500,000 would have a monthly income of $1,945.83 based on a dividend yield of 4.67%. However, this seemingly sound strategy that does not work out well in practice, writes an expert. Discipline and good financial advisory guidance are important to prevent this plan from turning into a “one-second back-to-work plan.”

How to save for retirement when you’re self-employed
Self-employed individuals are advised to start a retirement account, according to this article on U.S. News & World Report. The IRS offers several retirement plans for business owners and the self-employed, including a simplified employee pension IRA, a SIMPLE IRA, and a Solo 401(k). The best plan depends on one’s current situation and projected future income.

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