How to save for retirement in an era of FOMO

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

How to save for retirement in an era of FOMO
Various risks limit many millennials' ability to save for retirement, but within their reach are strategies to help them address these risks and dispel their fear of missing out, according to this opinion article on MarketWatch. For instance, they should have a clear vision of the kind of life they want, having longer working years that will give them more time to save for retirement. They should also start building their nest egg early and consistently, but without depriving themselves of the simple pleasures.

More than half of millennials have started to cut back on their spending to save for retirement, according to Bankrate report.
Office workers play Nintendo Co.'s Pokemon Go augmented-reality game, developed by Niantic Inc., on their smartphones outside the HSBC Holdings Plc headquarters building during lunch hour in Hong Kong, China, on Monday, July 25, 2016. After debuting in the U.S. earlier this month, Pokemon Go launched in Japan on Friday and became available in Hong Kong on Monday. Photographer: Anthony Kwan/Bloomberg

For older Americans, working a little longer is less costly than it used to be
Working past the retirement age is now less costly for seniors, thanks to reforms made by Congress in 1983, writes an expert on The Wall Street Journal. "One underappreciated factor is that over the past four decades, the 'tax' on working late in life has been gradually going down..." writes the expert. "For aging workers facing a later-in-life retirement than their parents’ generation, this is good news. If you’re going to be working longer, at least your retirement income won’t take as large a hit."

It's harder for women to save for retirement. Here's why (and what to do about it)
Compared with men, women face more challenges to build their nest egg and secure their retirement, according to this article on personal finance website Motley Fool. However, women will succeed in overcoming these hurdles with careful planning. For example, women need to prepare for a longer retirement horizon, as they are more likely to live longer than men. They will also need to set aside a bigger portion of their income, as female workers earn less than their male counterparts.

For Roth conversion fans, the tax sale is on
The new tax sale has lowered the tax rates for all the tax brackets for eight years, giving retirement investors a "tax sale" period to convert traditional IRA assets into a Roth and owe lower taxes on the conversion, writes an expert on Fox Business. "Your goal should be to convert your IRA dollars slowly enough that you don’t rise into a tax bracket that will give you heartburn, but quickly enough that you get all the heavy lifting done before tax rates go up for good," writes the expert. "Stretch the tax liability out over the full eight years to avoid paying any more taxes than are necessary."

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