Preparing your client for a stock market downdraft
Retirement savers should consider the next market downturn as an opportunity to invest in stocks that are "on sale," according to this article from Kiplinger. Moreover, clients who intend to generate retirement income from their investment portfolio should have three to five years of protected retirement accounts that can provide the needed income during a down market to enable the portfolio to recover.
Opinion: Your 401(k) plan could be a gold mine if you do these two simple things
Workers who have access to an employer-sponsored 401(k) plan are advised to make the most of the plan to secure their retirement, according to this article on MarketWatch. They should also allocate their savings to investments wisely and consider the "Bogle model," which is a mixed bag of low-cost index funds. The model has a considerable allocation in bonds and designed as an "all-weather" portfolio that can withstand a market downturn.
How to maximize your Social Security benefits, retirement savings
Seniors can improve their retirement prospects and maximize their Social Security benefits by delaying their benefit, according to this article from Fox Business. They should also get an excellent supplement health insurance plan when enrolling in Medicare and plan for long-term care expenses. Seniors are advised to retain some growth stocks in their portfolio to mitigate the risk of inflation. Getting professional help is also recommended.
Will your clients’ retirement nest egg last past 100?
People are expected to live longer and should prepare financially for a longer retirement horizon, according to this article from Forbes. One way to ensure their nest egg will outlast them is by annuitizing a portion of their retirement funds. “The secret of an annuity is that you can’t outlive it,” says an expert.
2018 Roth IRA income limits: What you need to know
Clients qualify to contribute to a Roth IRA depending on their filing status and modified adjusted gross income, according to this article on personal finance website Motley Fool. For example, singles, heads of household and couples filing separately have to reduce their contributions if their income exceeds $120,000 and will not be allowed to make contributions if their income is more than $135,000. Those who earn more than the income limits can use the backdoor Roth strategy to contribute to the account.
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