Our daily roundup of retirement news your clients may be thinking about.
Clients cannot rely heavily on retirement calculators as these tools only give an opinion of the sufficiency of their retirement savings, and as such, do not provide an accurate assessment, according to this article on Time Money. There are calculators that can offer help in making decision on taxes, Social Security benefits, and sequencing withdrawals from retirement accounts. When choosing a suitable retirement calculator, clients are advised to know the entity that developed the tool, its fidelity, and its real rate of return. Time Money
Risk-adjusted investing is the best approach to build a retirement nest egg, allowing investors to resort to passive management as their investments grow even in the midst of dwindling markets, according to this article on MarketWatch. "One of my favorite rules is 'Don't peek.' Don't let all the noise drown out your common sense and your wisdom. Just try not to pay that much attention, because it will have no effect whatsoever, categorically, on your lifetime investment returns," says John Bogle, founder of the Vanguard Group. MarketWatch
Retirees are advised to determine whether they will get the same benefits from their long-term-care insurance if they opt to retire in another country, according to this article on The New York Times. Reviewing the coverage is necessary, as policies differ among insurers and the states where the insurance is issued, says Jesse Slome, executive director of the American Association for Long-Term Care Insurance. While many long-term-care insurance covers care services obtained by the policy owners abroad, the overseas coverage could be more limited, an insurance broker says. The New York Times
Although disability insurance will ensure that people will still get an income in case an illness prevents them from working, buying such coverage can be costly, according to this article on CBS Moneywatch. Clients are advised to review disability coverage offered by their employer before making a decision. They also need to go to a broker that represent multiple insurers when shopping for disability insurance, and compare the prices and policy provisions on "own occupation, length of coverage, amount of benefit, and guaranteed renewable. CBS Moneywatch
A 60-year-old client is not entitled for a survivor benefit on her ex-spouse's record if they were married only for seven years, according to this article on Forbes. Social Security allows a survivor or spousal benefit if the marriage lasted at least 10 years. Forbes