RIP traditional long-term-care insurance
While many people fail to include insurance to cover long-term care costs in their retirement plan, buying traditional long-term care coverage may not be a wise move, according to this article on Market Watch. This type of insurance will not cover a policy holder's care expenses within the 180-elimination period before the coverage kicks in, and this could be a concern for those who have no substantial savings. A long-term care hybrid may be a better option since clients will not lose it if they won't use it, unlike the traditional long-term care coverage.  --Market Watch

Roth IRA strategies for the ‘Class of 2010’
Clients need to have a retirement strategy to make the most of holding a Roth IRA with 401(k) and other accounts, according to this article in The Wall Street Journal. They are advised to follow the ground rules, account for taxes when taking withdrawals, and carefully select the right asset to put in the accounts. They also need to continue contributing to their IRA accounts despite the ongoing debate in Congress on proposed changes to the rules, and for clients who have adequate nest eggs, a Roth account should be viewed as a vehicle to leave something behind to their loved ones when they die.  --The Wall Street Journal

5 states weighing big tax breaks for retirees
Legislators in five states are looking at measures aimed at making a big chunk of retirees' income exempted from income tax, according to a report from the Citizens for Tax Justice. Proponents argue that such tax break would lure more retirees to relocate to these states, but critics are doubtful if the proposal would serve its purpose. "Excluding retirement income from state tax gives money that states don't have to people who don't need it to discourage them from doing something that, by and large, they are not doing," according to the Tax Policy Center.  --USA Today

Does anyone recall the myRA retirement savings plan?
The Treasury Department is taking its time in implementing the new myRA, which is designed for about 50 million Americans who have no access to a 401(k) retirement plans, according to this article on CNBC. President Barack Obama introduced the new retirement vehicle in his 2014 State of the Union address, but the department has not formed the division that will be in charge of the implementation. "They're dealing with people's money, so they want to make sure they get all the bugs out to handle the expected volume coming. I expect there will be substantial use of the program once it's fully rolled out," says David John of AARP.  --CNBC

Retirees, beware state taxes when considering a move
Retirees who intend to relocate to another state need to consider the tax implications of their decision, according to this article on Kiplinger. There are states that do not require residents to pay income tax, with some states exempting certain types of pensions and retirement accounts from tax. Some states subject up to 80% of retirees' Social Security income to tax, while there are other states that impose no income taxes but have hefty property tax rates.  --Kiplinger

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