Our daily roundup of retirement news your clients may be thinking about.
Buying stock in technology companies may not be a good option for retirement investors, according to this article on Motley Fool. After all, retirees need to minimize their risk exposure to secure their retirement savings, and technology is a volatile industry. However, retirees are advised to consider investing in Microsoft because as a megacap company with stable operations, the technology firm pays strong dividends, enabling its investors to get solid income while their purchasing power is protected. Motley Fool
Although millennial workers are concerned that they are not saving enough for retirement as they pay off their student loans and other debts, the article says they are doing just fine. Younger workers started saving earlier and setting aside more money compared with their older counterparts, according to a study by Transamerica. Millennial workers need to allay their fears and are advised to build up an emergency fund, pay off first debts with high interest, and take advantage of their employer's 401(k) match contributions. Time Money
A private equity investment product being launched by Switzerland-based Partners Group is aimed at the 401(k) industry, according to this article in The Wall Street Journal. The new product is designed to provide private equity with an access to capital. For private investment firms, the defined contribution market is a difficult area to tap into as there is no fund structure that can incorporate private equity holdings that are not easy to value unlike stocks and bonds. The Wall Street Journal
Permanent life insurance coverage is a good instrument retirement savers can use to help build their nest eggs, according to this article on MarketWatch. Clients may take withdrawals from their life insurance policies' cash reserves, although they may face pitfalls when doing so. Life insurance offers additional savings to IRA and 401(k) contributions with the same tax advantages, and can fund clients' early retirement years. MarketWatch
While clients are aggressive in building their nest eggs, rules for IRAs, 401(k), and other retirement savings plans may sometimes impede their efforts, according to this article on Kiplinger. Some rules place a limit to annual contributions or prevent people in higher income brackets from contributing to a particular retirement account. Read the strategies that clients can use to maximize their savings for their golden years. Kiplinger
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- 401(k) Fees at Issue as High Court Accepts Edison Worker Appeal