Our daily roundup of retirement news your clients may be thinking about.
The one asset class every investor needs
Small-cap value funds are a good investment type retirement investors can include in their stock portfolio, according to MarketWatch. Small-cap value investing is convenient and easy, while data show that these stocks outperformed the S&P 500 60 times over a 20-year period. Small-cap value stocks lost an average of only 9.2% during the same 20 years that the S&P lost 12.1% on average.
Don't get caught flat-footed by the "new retirement"
The concept of "new retirement" means that clients need to enhance their retirement planning by including factors such as a longer life span, the need to remain employed, and other unpredictable concerns, when developing a retirement strategy, writes a contributor for Forbes. The concept also means that those in their 40s and 50s may start planning for their golden years while those who are in 60s and older can still weigh other financial planning options. Those in their 90s should assess their expectations and financial standing to avoid becoming a burden to their families, the contributor adds. --Forbes
Should I be more hands on with my 401(k)?
Young clients may actively manage their 401(k) retirement plans if they feel comfortable with the idea, according to CNN Money. Those who have a working knowledge of asset allocation can build an investment portfolio that is diversified and inexpensive, but getting professional advice can help them boost their portfolio's returns. Some plans also provide online tools and target date funds that clients can rely on. Clients who want to manage their 401(k) can reduce the risk by rebalancing their portfolio every year, and increase their conservative investments as they approach retirement. --CNN Money
Financial firms fight rule that would put client interests first
Proposed federal rules aimed at making clients' interest a top priority in managing retirement accounts drew flak from investment brokers and advisers. The U.S. Department of Labor has deferred the changes from August to January, and the deadline might not be followed, according to Employee Benefits Security Administration officials. The old rules allow brokers and advisers to choose retirement investments that they find suitable for their clients, while the proposed changes would be required to abide by the fiduciary standard. -- CBS Moneywatch
Social Security: 1 number every retiree needs to know right now
Retirees should not forget their Social Security primary insurance amount, which is what they expect to receive when they reach the full retirement age at 66, according to a Motley Fool contributor. Clients will get less than the amount if they opt to claim their benefits earlier than the FRA or the actual benefits will be higher than the PIA if they wait until 70. Social Security is the source of at least 90% of the income of nearly 50% of unmarried retirees, the contributor says. Motley Fool