Clients working past 65? Help them avoid Medicare trap that could increase taxes
Many seniors are deciding these days to continue working past the age of 65 for the extra income and for the benefits of employer health care benefits, particularly if they have a tax-advantageous plan like a health savings account, according to this column from the Los Angeles Times. However, they could lose the tax exemptions in their HSAs if they enroll in Medicare. Under the rules, seniors face a tax liability for HSA contributions if they carry health coverage other than the high-deductible policy.

Image: Bloomberg
Image: Bloomberg

Starting to save for retirement, a few decades late
Clients who have lagged behind in retirement savings can still build their nest egg, according to this article on CBS Moneywatch. They are advised to determine the amount they should save as early as they’re able in order to start their preparations right away. They should also save aggressively and invest in tax-advantaged retirement accounts, such as 401(k)s and IRAs for optimum returns. "A lot of people start later in life – people can be successful, but they have to put away more money because they're playing catch-up," says an expert.

3 sunny places to retire — on just a Social Security check
Retirees can relocate to three Latin American countries and live off their Social Security benefit alone, according to this article on CNBC. The cost of living, health care costs and other expenses in Mexico, Panama and Ecuador are not as expensive as in the U.S., so an average retiree receiving $1,371 in benefit can live comfortably in these countries. "While it may take some out-of-the-box thinking, and a little extra paperwork, retiring in south of the border can mean your Social Security income goes much, much further than it would at home."

Top tips retirees wish they had known
More than 36% of retirees polled by MoneyTips said that pre-retirees should start building their nest egg as early as they can, according to this article from Fox Business. Retirees also advised today's workers to incur more savings than they need, the survey found. Another advice from retirees is for pre-retirees to account for their health care needs when saving for retirement.

The 9 investment risks you need to guard against
Clients have to mitigate the different types of investment risks in their portfolio, writes an expert on Kiplinger. These are market volatility, concentration risk, business risk, inflation, interest rate fluctuation and default risk. Reinvestments, political and regulatory changes, and currency declines are other factors that could also pose a risk to their investment, writes the expert. "You can improve your odds of succeeding by knowing the different types of risk, identifying which investments are subject to those risks and then diversifying your portfolio in a way that spreads the risk around."

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