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

How panicky retirement savers blew it when stocks fell

Trading in retirement accounts rose as the market tumbled in the later part of August, suggesting that retirement investors panicked in the face of the market decline, according this article on Time Money. When the market bounced back days after, many of those who shifted their assets from stocks to bonds were not able to participate in the rebound. The lesson for retirement investors is to do nothing when the market drops again and stick to their long-term investment goals. –Time Money

9 factors for clients to consider before buying long-term care insurance

Clients who are considering getting long-term care insurance are advised to determine the best option for them, compare the policies offered to them and make a background check of the carriers, according to this article on this article in U.S. News & World Report. They also need to find ways to lower the cost of the coverage, make sure they can pay the premiums and furnish their confidants with copies of the policy. It is also advised that they apply early, check available policies for couples and make an annual assessment of their long-term care plans. –Yahoo Finance

Active vs. passive investing in retirement

Retirement investors are better off investing passively than engaging in active investing, says Christine Benz, Morningstar's director of personal finance. Actively managed funds offer 40% in returns but their expense ratio takes away one-fourth of the earnings, while index funds and exchange traded funds can be bought usually for less than 10 basis points, or 2.5% of the 4% expected return, Benz says. Index funds also are more tax-efficient than active funds, which "is an important benefit for retirees because many retirees come into retirement with substantial assets in taxable accounts." –Morningstar

Should clients take the lump sum on their pensions?

Taking a lump sum pension payment is a smart move for retirees if they can manage their finances effectively or opt to depend on a financial adviser for managing their money, according to this article on Kiplinger. Such a move will also work if they decide to roll the lump-sum payment to an IRA and allow it to grow until they turn 65. However, those who are in good health and have poor investment performance are advised to forgo this strategy and instead settle for a monthly pension when they reach 65. –Kiplinger

4 ways to protect clients' retirement money from scammers

Clients can protect their retirement savings and their loved ones' by simplifying their investing strategy, according to this article on Time Money. Getting a network of family members and friends who are knowledgeable about investing is also a good move, since these people can raise the red signal if something is wrong. Clients also need to have backup person who can monitor their investing activities closely. It is also good to develop an investment policy statement that will keep them on track towards their investing goals. –Time

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