The money blind spot for millennials: Retirement Scan
Our daily roundup of retirement news your clients may be thinking about.
The money blind spot for millennials
Millennials are making the right moves to secure their future, according to research. but there are factors that keep many of them from becoming smart in investing, according to this article on Forbes. Surveys show that although many millennials think that their parents can provide them good financial advice, they are reluctant to seek help from their elders, as well as from financial professionals. To help millennial children become savvy investors, parents can set a meeting between them and their financial adviser or direct them to online tools and websites that offer basic information about investing. They may also want to share the wise moves and missteps they have taken as an investor.
Financial decisions that cause regret in retirement
Relocating without considering all factors and falling for too-good-to-be-true offers are among the mistakes that people will regret after they retire, according to this article on Kiplinger. Those who plan to continue working indefinitely after retirement age, do not make retirement saving a priority, and opt to file for Social Security benefits early are likely to regret making these decisions after retirement. Other financial decisions that will turn out to be wrong moves when people retire are tapping into 401(k) plans, throwing away bookkeeping records and other documents, prioritizing their children, buying into a time-share, and not investing in the stock market.
Help clients get over worries and invest for retirement
A study by Wells Fargo has found that many retirees and workers are putting their retirement security at risk because of focusing too much on avoiding losses rather than maximizing the growth of their investments, according to this article on Money. People should be more aggressive in investing if they want to achieve their savings goals by increasing their asset allocation to stocks. Clients who invested $10,000 40 years ago would end up with $581,295 in retirement if 70% of the assets are invested in stocks and 30% in bonds, but would have $336,715 if they invest 70% of the funds in bonds and 30% in stocks, according to Wells Fargo.
Tips to help retirees avoid being scammed
As consumer scams victimize 10% of Americans annually, an expert says that the key to dealing with the risk is to minimize their vulnerability to fraud, according to this article on MarketWatch. "To minimize your exposure to fraud, I strongly suggest keeping up to date on the latest scams, as if you are aware of them, you are more likely to avoid being scammed," says the expert. Simple preventive measures such as locking their mailbox and not leaving personal information in their vehicle can help protect retirees and other people from fraudsters.
A Medicare open enrollment checklist
Medicare's open enrollment period offers an opportunity for retirees to review their coverage and shop for new offerings that provide the best coverage and can help save on premiums, according to this article on Morningstar. This is especially true for retirees who have Part D prescription drug coverage or are on Medicare Advantage. When shopping around for the best coverage offering, retirees are advised to use the online tool at the Medicare website, or they may consider calling the Medicare Rights Center's free hotline. Retirees may also want to hire an independent, fee-based counseling service provider for guidance and assistance with paperwork, or they may phone individual-plan sponsors to get the information they need.