Our daily roundup of retirement news your clients may be thinking about.
Clients should take the opportunity to shop around for a better health insurance coverage during open enrollment, as premiums are stabilizing and more insurers are offering individual policy options, according to this article from Kiplinger. Those with higher deductible health plans should take advantage of contributing to a health savings account, which offers triple tax benefits: pretax or deductible contributions, tax-deferred growth and tax-free withdrawals for qualified health-related costs.
Retirees who are undecided whether to spend their savings or leave an inheritance for their loved ones should consider their monthly living costs as well as unforeseen expenses before making a decision, according to this article on U.S. News & World Report. They should also check their financial plan to see if they are at the risk of running out of money, should also know what "legacy" truly means to them, and assess their circumstances. It is possible that retirees pursue spending their nest egg away and set aside something to leave behind for their loved ones.
Workers are advised to review their workplace retirement plan as they assess health and life insurance option for 2019 during the annual benefits enrollment this October, according to this article on CNBC. They should check their annual fee disclosures, boost their contributions and take advantage of Roth 401(k) if their employer offers such a feature. For the people who understand it, the in-plan Roth conversion is a nice tax-planning feature, says an expert.
Many seniors have trouble moving from their saving plan to spending plan in retirement, according to this article from Kiplinger. To overcome this, retirees are advised to look for appealing spending options, support their adult children or grandchildren or donate to a charity. "Clients are acutely aware of the risk of running out of money. There's also the risk of dying on a large pile of beans that never got put to good use," says a certified financial planner.
