Our daily roundup of retirement news your clients may be thinking about.
5 investment mistakes retirees should avoid
Retired clients are advised to avoid having excess cash on hand, according to MarketWatch. With the level of inflation that retirees face from rising health care costs and general living expenses, hoarding cash is a sure way to lose money, according to this article. They also should avoid a concentration of assets on any certain asset class or type of investment. They should be particularly wary of any emotional links to an investment, which is "guaranteed to be a one-way street." They should either sell down any such holdings, or find a way to hedge them. And while a discussion of gold can quickly turn into a debate (gold bugs vs. gold haters), it does provide diversification from other assets, but still should not exceed 5% of total investable assets. And, of course, they should avoid investment types or financial products with hefty fees. — MarketWatch
How to get more clients to delay claiming Social Security
Americans will be more inclined to defer Social Security retirement benefits if they have the option to receive a lump sum payment in exchange of the delayed retirement credit, according to a study from the University of Pennsylvania. "Our partial buyout approach is designed to be cost-neutral to the Social Security system, as the plan will raise no additional solvency concerns nor require wealth transfers from future to implement," an expert writes. — The Wall Street Journal
Clients are stressed about retirement. Maybe they're not saving?
Retirement causes enormous stress among many Americans as they get close to their planned retirement age, according to a study. However, many of them fail to address this stress by saving enough for their golden years, the study found. “It’s like diet and exercise. You know what the right things are, but it’s hard to stay the course. Those that do have a plan, have a (financial) adviser and are saving, their stress levels are much lower than those who don’t,” says an expert. — Washington Post
These states have the best elder care options, prices
South Dakota, Iowa and Minnesota are among the states that offer the most affordable and quality elder care services based on a study by Caring.com. Other states with the best services for elder care are Alaska, Oregon and Colorado. The ranking is based on various factors, such as median cost of elder care services, facility reviews and support for caregivers. — CNBC
Don't fall for these 3 retirement myths
People who are preparing for retirement can expect their expenses to increase instead of decline after they retire, according to The Motley Fool. Also, they need to know that their Social Security retirement benefits will not be enough to cover their living costs and other expenses. They may need to engage in tax planning since a portion of their entire retirement income or their entire earnings may be subject to tax. — The Motley Fool