Our daily roundup of retirement news your clients may be thinking about.
Stock market volatility can quadruple clients' retirement
Long-term investors should take advantage of stock volatility, rather than immediately sell stocks and turn to bonds, according to MarketWatch. An investment of $100,000 in an all-stock portfolio and a reinvestment of the dividends at the higher stock market return can generate over 10 times the capital. Serious long-term investors are advised to have a risk-adjusted portfolio and to employ a rules-based strategy to help weather declines. –MarketWatch
How to make sure clients' adult children can retire well
Clients can help their adult children prepare for retirement by encouraging them to maximize their employee benefits packages and save enough to cover their living expenses for a minimum of three to six months, according to this article on CNBC. They can advise their children to contribute to a Roth IRA and increase their 401(k) contributions by up to 2% annually until 15% of income are going to a retirement plan. –CNBC
Stop measuring retirement portfolio performance wrong
Clients should consider risk as well as return when evaluating their retirement portfolio' performance. "If you're taking more risk, you should expect more return. If you're taking less risk, you're willing to accept less return, said FinMason CEO Kendrick Wakeman. Risk can be hard to quantify but one can compare his portfolio's performance to a portfolio with the same risk tolerance as the client's. –Daily Finance
Don't waste your clients' savings on a boring retirement
Lifestyle planning, or deciding how you want to spend the last years of your life, is as important as financial planning during retirement, according to CNN Money. A satisfying retirement can be achieved by staying connected to the world such as having a strong social network that could involve family and friends. –CNN Money
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