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

Don't let clients read too much into 2015 returns
As the year draws to an end and people star assessing the stock market's performance, investors will find that formerly robust market segments delivered mediocre results, according to this article on MarketWatch. However, retirees are advised to avoid making future investing decisions based on this year's outcome and focus instead on their investment goals, understanding that investment management is normally "a three-year exercise."  --MarketWatch

Fixing a broken retirement system
America's current retirement system has many loopholes but there are strategies for retirement savers to make the most of the system, according to this article on USA Today. For instance, clients should consider making 401(k) contributions just enough for them to get their employer's match contributions or opting out of the plan if the employer offers no match. Clients also may roll over old 401(k) with previous employers to avoid ongoing plan fees, defer Social Security retirement benefits as long as they can and downsize to help reduce living costs.  --USA Today

Forget fixed income: Here's how clients can get yearly raises
Receiving a fixed income in retirement is not a good idea because of inflation, so retirees may consider investing in Treasury Inflation-Protected Securities, which are designed to keep up with inflationary changes, according to this article on The Motley Fool. Investing in high-dividend securities is another strategy to get a yearly increase in retirement income to cover the effects of inflation. Another option to ensure their retirement savings can keep up with inflation is buying an annuity.   --The Motley Fool

5 steps to retirement planning for entrepreneurs
Entrepreneurs are advised to separate their personal bank accounts and credit cards from bank accounts and credit cards used for their businesses to make it easy for them to plan and save for retirement, according to this article in U.S. News & World Report. They also need to develop a financial plan and a flexible budget since they receive variable income. Entrepreneurs should use a Solo 401(k), Simplified Employee Pension IRA and other retirement accounts to build their nest eggs and automating their contributions is a smart move.  --Yahoo Finance

Should clients choose a partial lump sum or higher monthly pension payments?
A 61-year-old pre-retiree who has considerable 401(k) assets and a deferred compensation plan may consider his company's offer of partial lump-sum payment for his pension, according to this Q&A article in Time Money. Although the partial lump sum would mean a 25% cut to the pension annuity, retiring early means he will have more years in retirement and his pension income's purchasing power will dwindle over time because of inflation.  --Time Money

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