One big retirement lie and what workers need to know about it

Register now

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

One big retirement lie... and what clients need to know about it
Securing the golden years could mean avoiding some of the retirement strategies that have been followed in the past, according to this article on Forbes. For example, socking away all retirement savings in traditional 401(k) and traditional IRA accounts may no longer be wise, as distributions from these accounts will be taxed and clients are likely to move to a higher tax rate when they retire. A bigger taxable income could also mean a bigger Medicare Part B and D premium and taxation on a portion of their Social Security benefits.

10 proven ways to boost your retirement income
Boosting and investing the savings right away is one of the proven ways for clients to increase their income after they retire, according to this article on Motley Fool. They can also add a few more years to their working record, consider getting a job in retirement, and opt for dividend-paying stocks, annuities and other interest-paying investments to boost their retirement income. Getting a reverse mortgage, moving to a less expensive location and borrowing against life insurance coverage are other strategies that can help augment retirement income.

Do your homework before moving into a retirement community
A continuing care retirement community can be a great option for retirees but seniors are advised to do due diligence before making a decision, according to this article on CNBC. That's because living in such a facility can be costly and they will not be happy with the quality and types of amenities that the facility offers, experts say. Moreover, the facility may also face financial problems ahead. “In some cases, lower than 90 percent occupancy could suggest an issue with being able to fill certain units with new residents, and the inability to maintain a high occupancy level could be an indicator of problems in the future,” says an expert.

Countdown to retirement: A five-year plan
This article on The New York Times offers tips on what seniors can do in the years leading to their retirement to improve their prospects. Seniors usually start feeling anxious about retirement five years or so before they leave the workforce for good, but they can use this anxiety to make wise decisions. “We call the five years right before and right after retirement ‘the fragile decade,’ because your investment returns then are disproportionately important,” says an expert.

Young couples and retirees ditch the city for a new kind of suburb
Moving to a suburb is increasingly becoming a popular option among young couples and empty nesters, as the location affords them the conveniences of urban life, according to this article on Yahoo Finance. “It’s about lifestyle...," says an expert. "You’ve got lower crime in suburban areas than you would have in urban areas. In urban areas you have walkability and public transportation… bringing some of those things to the suburbs in small downtown areas is really the concept that we see — the concept of surban.”

For reprint and licensing requests for this article, click here.
Retirement planning Retirement withdrawals Retirement income 401(k) Roth 401(k) IRAs Roth IRAs