Our daily roundup of retirement news your clients may be thinking about.

Three tips for personal-debt settlement

Retirees who can no longer afford to settle their debts because of job loss, business failure and other misfortunes may seek a one-time-payment settlement with their creditors, according to this article on MarketWatch. They may also opt to seek settlement after a judgment or file a bankruptcy. To avoid facing such a problem in the future, retirees are advised to evaluate their ability to pay the loan before taking the loan and hold only two credit cards and a bank’s line of credit at the best possible rates. –MarketWatch

From 'buckets' to 'paychecks,' advisors explain portfolio tacks

Retirees can tap their portfolio using various strategies, such as the "buckets" approach, which puts together investments that are intended for a specific purpose, according to this article on CNBC. They may also choose the 4% withdrawal rule or the "paychecks" approach. Another option is the lumpy approach, which allows for funding for one-time hefty expenses, such as home repair and vacation. –CNBC

Social Security at 80: How's it doing?

After 80 years since its inception, Social Security has been an effective government program in helping reduce poverty and providing guaranteed income among retirees, according to this article on CBS Moneywatch. Social Security is also popular to many Americans, although more people are becoming less confident that the program won't be there when they retire. However, Social Security's financial standing is in the red, with its trustees’ board issuing a report that the program's trust fund will run out by 2034. –CBS Moneywatch

Stretching retirement savings beyond the stretch

Clients will be required to take required minimum distributions from a Roth 401(k) plan, but if they won't need the RMD, they may roll the assets to a Roth IRA, which is not subject to RMD, according to this article on MarketWatch. Leaving the money in a Roth 401(k) plan is a better option for those who want to leave wealth to their loved ones, since the account allows beneficiaries to "stretch" the distributions using an RMD schedule. Contributions to a Roth 401(k) are capped this year at $18,000 for workers age 50 and below, or $24,000 for those who are above 50. –MarketWatch

Social Security Q&A: How Is the total length of marriage determined

A client who divorced his spouse, remarried the same person and divorced again is entitled to spousal benefit on her ex-husband's record if the first divorce and remarriage took place in the same year, according to this article on Forbes. Social Security will consider the entire marriage continuous and make them meet the 10-year requirement if they divorced and remarried in the same year. –Forbes

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