Our daily roundup of retirement news your clients may be thinking about.
The ages between 60 and 70 creates a great opportunity for seniors to make financial moves that will protect their retirement nest egg, such as enhance the tax efficiency of their portfolio, writes an expert on Kiplinger. "At age 59 ½, you’ll no longer have to deal with that intimidating 10% tax penalty when you withdraw money from tax-deferred retirement accounts," writes the expert. "And you’ll still have years before those unpleasant required minimum distributions kick in at age 70 ½."
Investors have the option of shifting to a self-directed IRA to make the most of opportunities that the company handling the IRA will not be able to provide, writes an expert for Forbes. They can invest in multifamily real estate syndications and other investments that generate passive returns, writes the expert. Hiring a tax professional is recommended to determine what they can do and decide whether to use funds from their self-directed IRA or other sources.
Investors should weigh their options before selling their shares amid the rising market volatility, according to this article on Bankrate. Retirees and pre-retirees should avoid making any decision especially if they have a well-diversified portfolio. They should stick to their long-term strategy, minimize their exposure to risks and review the beneficiaries of their investment accounts.
Clients who want to become a 401(k) millionaire by the time they retire should start saving as early as they can, according to this Q&A article on Forbes. They should also sock away as much as 15% of their income in their retirement accounts and invest in equities according to their time horizon, writes the expert. "So making sure that you are allocated appropriately is a really great idea, and target date funds make it really easy to do that."
