Should clients set a stop-loss on their retirement accounts in a bear market? Retirement Scan
Our daily roundup of retirement news your clients may be thinking about.
Should you set a stop-loss on your retirement account in a bear market?
Retirement investors who need to decide whether to sell depreciated stocks or ride out the bear market should make a decision based on their investing goals, according to this article on Yahoo Finance/U.S. News & World Report. "The key is what was your plan on a trade when you first (got) in to the trade," says a market strategist. "I think that the planning step is often one people miss and those that do not have one are often the same folks that make the decisions that we all refer to as emotional investment decisions."
Social Security checks to get a tiny increase in 2017
The American Institute for Economic Research says that Social Security beneficiaries can expect their benefit payouts to increase from 0.2% to 0.5% next year, according to this article on CNNMoney. The increase means that up to $6.53 will be added to beneficiaries' monthly benefits in 2017. Government data show that retirees are currently receiving $1,305.30 on average.
Here's what the typical American retiree spends on healthcare
An average 65-year-old couple who intend to retire this year should have $260,000 for their healthcare expenses throughout the golden years, and the costs are likely to increase for future retirees, according to this article on Motley Fool. Retirees who want to prepare for their healthcare needs are advised to get a Medigap insurance plan, while pre-retirees should consider contributing to a health savings account. Clients should also remain fit and healthy as long as they can to avoid illnesses and curb medical expenses after they retire.
What U.S. retirees can learn from New Zealand and Australia
Americans should prioritize retirement savings, just like their counterparts in Australia and New Zealand, according to this article on Fox Business. The two countries have the most effective retirement systems, which involve the government, the employer and the worker in achieving retirement security for their citizens, according to Natixis Global Asset Management. “These countries have all three legs of the stool firmly in tact so that means there is a government system in place that is well funded and allows folks to have some certainty that they will have benefits over time. There is an employer incentive in place for folks to save at the workplace and there are incentives in place for individuals," says an expert.
When it comes to managing retirement savings, confusion reigns
Many Americans have no idea how much they have saved for retirement and whether they will have a sustainable income after they retire, according to this article on MarketWatch. As people are very likely to live longer, they should look for guaranteed income sources to ensure a comfortable life in their golden years. Annuities offer guaranteed retirement income but many people are reluctant to annuitize because of their misconceptions of the product. "The complexities involved in generating guaranteed income in retirement makes a good case for working with a qualified advisor who can evaluate each individual's situation, and determine the most cost effective approach", says an expert.