Our daily roundup of retirement news your clients may be thinking about.
Does dollar-cost averaging protect from loss?
Retirement-age investors who use dollar-cost averaging will not have protection against losses but they will be able to curb the risk of buying high-priced investments, according to this article on MarketWatch. While a dollar-cost average strategy allows investors to buy more shares over a certain period than doing a single purchase, if clients tend to be nervous about market moves, such a strategy can magnify their fears, the article says. For instance, many people will delay starting or stop a dollar-cost strategy that's already in process when markets drop, undermining the process at just the wrong time. The article concludes that a good advisor can help with these issues. --MarketWatch
Answers to readers' questions on Social Security and Medicare
Clients will be exempted from Medicare Part B premium increase next year if they are on Social Security and actively enrolled in Medicare in November and December this year, says Stacy Sanders, the federal policy direct at the Medicare Rights Center. Also, clients pay the premium by having the amount deducted from their Social Security benefit, and their annual income won't exceed $85,000 ($170,000 for couples), Sanders adds. Those who consider taking Social Security benefits earlier than planned to avoid the premium increase are advised to consult with an SSA representative before making a decision. --USA Today
Diverting retirement savings to pay for college
Nearly one-third of Americans polled by LIMRA's Secure Retirement Institute say they're open to deferring their retirement to help support a child or grandchild in college, according to this article on CBS Moneywatch. Of the respondents, 8% have delayed their retirement, 11% have decreased their retirement savings rate and 10% have tapped their nest egg just to help send a child or grandchild to college, the survey found. --CBS Moneywatch
Medicare's open enrollment checklist
Seniors are advised to take advantage of the fall open enrollment for prescription-drug and Medicare Advantage plans from October 15 to December 7 to compare prices and possibly change providers, according to this article on Morningstar. When shopping for the best health insurance coverage, clients need to check their Medicare plan statement, choose their premium and consider other factors aside from the monthly premium they will pay. Know more of the things that should be on the checklist of retirees when shopping during the open enrollment before they make a decision.--Morningstar
Are millennials financially doomed?
A survey by TD Ameritrade has found that 20% of millennials gave financial support to an aging parent over the past year, providing $18,250 a year on average for medical and other costs, according to this article on CNBC. "Millennials — who should have plenty of time on their side when it comes to long-term investing — are starting off behind the curve. They're putting off saving for retirement because of other financial obligations, a decision that can have unfortunate consequences," said TD Ameritrade's Matt Sadowsky. --CNBC
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