How new rules could affect the way clients save for retirement

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New rules could affect how clients save for retirement
Clients may have to modify their retirement savings strategy as a result of the changes under the Secure Act, according to this article in Money. For example, clients can continue contributing to a traditional IRA past the age of 70 1/2 while the RMD age is raised to age 72, giving retirees greater flexibility. Seniors who have to choose between a traditional IRA and Roth IRA should account for their current and future tax rates, as these accounts receive different tax treatments, according to the article.

Why you don't need a 401(k) to retire rich
An employer-sponsored 401(k) plan is a great tax-advantaged tool to save for retirement, but not all workers have access to this savings vehicle, according to this Motley Fool article. Those who cannot contribute to a 401(k) can still build their retirement savings by contributing to an IRA, while a taxable brokerage account is another place for holding tax-efficient investments. Running a low-maintenance business can also be a great way to save for retirement.

4 misconceptions about retiring early
FIRE, or the Financial Independence Retire Early movement, is attracting not only younger investors, but also those in their 50s and 60s, writes an expert in MarketWatch. Many older clients are behind their retirement savings goals and face many financial hurdles including high housing and health care costs, along with limited income, the expert notes. "Joining the FIRE movement after 50, however, can help [them] break the cycle of inaction and get [their] retirement savings on track,” the expert writes.

Where can clients turn when they’re short on cash?
Cash-strapped clients may have other options aside from high-interest credit cards to raise the funds needed to cover their financial obligations, according to this article in CNBC. For example, working clients have the option of taking a loan against their 401(k)s, however they have to repay the debt within five years, plus interest, in order to avoid taxes. Some 401(k)s also offer hardship withdrawals for specific purposes, but they will face income taxes and a 10% penalty on the withdrawn amount.

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Avoid these 30 states in retirement if you want to keep your money
North Dakota, California and Rhode Island are among the 30 priciest states to retire, based on this GOBankingRates article in Yahoo Finance. The list is based on an analysis of retirees' expenses, including property taxes, cost of living, sales taxes, Social Security and income taxes. Also on the list are Vermont, Nebraska, Hawaii and Connecticut.

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