Our daily roundup of retirement news your clients may be thinking about.
The federal government has launched myRA, a free, no-risk retirement saving plan for workers whose employers offer no 401(k) or similar plans, according to this article on USA Today. Some 55 million workers are expected to benefit from the plan, according to AARP. “To have a secure retirement, the earlier you start, the better off you’re going to be and we know that there are some challenges in getting people started. It has to be simple. It has to be safe, and it has to be affordable," says Treasury Secretary Jack Lew. –USA Today
Female participants in 401(k) and other defined contribution plans have the same proportion of savings to equity as their male counterparts, with more women than men seeking advice from professionals in constructing their portfolio, according to a study by Vanguard. However, retirement account balances are considerably lower among women than men, and this can be attributed to the fact that male workers tend to get bigger pay than female employees. –Fortune
Retirees are advised to avoid trading actively as it would put their retirement savings in jeopardy, according to this article on MarketWatch. Those who want to develop a new hobby and cannot fight the urge to trade stocks may do so but they should only use the portion of their portfolio that is not expected to generate retirement income. "You spent your whole life saving and investing correctly in order to fund a fulfilling and enjoyable retirement; don't blow it trying to do the near impossible," the article concludes. –MarketWatch
Federal officials and congressional leaders crafted the recent budget deal that includes provisions to change certain Social Security rules in a very short time without conducting consultations and hearings, according to this article on Forbes. While amendments to the bill have been made, the proposed changes would disallow couples to use file-and-suspend as a claiming strategy, which experts say only benefit high-income families. However, a study by Stanford economist John Shoven and other analysts show that wealthy couples are less likely to delay their Social Security retirement claims compared with poor couples, and costs of this strategy could not actually reach $9.5 billion as others estimated. –Forbes
Dividend paying stocks can provide a stable income but retirees are advised to choose businesses that are reliable in making future income payments, according to this article on The Motley Fool. Know the stocks that experts recommend for retiree investors to include in their portfolios. –The Motley Fool