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

Diversification is even more important for retirees
Diversifying retirement portfolios can help retirees ensure their nest egg will be protected from sudden changes in the market, according to this article on MarketWatch. To achieve a well-diversified portfolio, clients are advised to divide their investments into cash and 10 asset classes that will include U.S. large-cap value stocks, U.S. large-cap growth stocks, U.S. small-cap value stocks and U.S. small-cap growth stocks. They must also include stocks from Europe, Japan and established foreign countries, stocks from China and other emerging markets, U.S. government bonds, U.S. corporate bonds, established foreign-country bonds and emerging-market bonds. --MarketWatch

A moderate mutual fund retirement portfolio in 3 buckets
Clients who have a 20-year time horizon and a moderate tolerance for risk may adopt a mutual fund retirement portfolio consisting of three buckets, writes Christine Benz, Morningstar's director of personal finance. In this model, which, she says, was pioneered by financial planner Harold Evensky, the first bucket would account for 10% of the overall portfolio and consists of cash and cash equivalents, such as CDs and money markets. The goal of this bucket is to cover near-term living expenses. The second bucket, which would account for 40% of the overall portfolio and run from 3 to 10 years, "is designed to deliver a higher level of income than bucket one; it also aims to preserve purchasing power with a dash of capital appreciation," Benz writes. The long-term portion of the portfolio accounts for 50% of the portfolio and includes investments that are aimed at overall growth, Benz says.--Morningstar

How much should clients set aside for retirement?
Studies have shown that many Americans are not saving enough to have a comfortable retirement, according to this article on CNBC. The key for clients to retirement saving is to evaluate their needs and reduce their expenses so they can free up more money to save. They also need to contribute to their retirement plans enough to take advantage of their employer match contribution. People are advised to weigh their option of delaying their retirement date because there are factors beyond their control, such as illness that can derail their plans.  --CNBC

Why funding retirement is more important than student loan repayment
While retirement saving should be a priority, clients can still repay their student loan while saving for the golden years, according to this article on Forbes. One option is to auto-pilot their retirement plan contributions first and plan on paying down student loan. They also need to understand the power of compounding and find the right balance between saving for retirement and paying the loan.  --Forbes

Who should consider an immediate annuity?
An immediate annuity is a good option for clients if they have no other sources of monthly income in retirement, according to this article on The Motley Fool. Holding such an annuity is also a good move for those who expect to have a longer life span. Those who intend to secure the financial standing of their spouse or loved ones after they die may find an immediate annuity the right choice.  --The Motley Fool

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