Our daily roundup of retirement news your clients may be thinking about.
Retirees who consider downsizing need to know that such a move doesn't always end up with savings, according to this article on MarketWatch. Making such a decision can be extremely emotional, so they are advised to consider incorporating their home equity into their retirement plan as early as they can. Before making a decision, clients need to consider the lifestyle they want in retirement, the liability they will face and their assets' capability in covering their living costs. Seeking professional advice is recommended to enable them to handle their finances objectively. MarketWatch
Striking a balance between securing returns in retirement and taking risk to achieve growth in an investment portfolio can be challenging for clients, according to this article on CNNMoney. To achieve this, retirement investors need to review their portfolio and determine their tolerance for risks. They also need to estimate how their portfolio will perform during a major market correction. CNN Money
A survey by the National Association of Retirement Plan found that about 25% of poll participants overestimate their knowledge about retirement saving, according to this article in The Washington Post. These respondents voiced confidence about how much they knew about retirement but got low scores in a quiz, the survey finds. The poll also found that 25% of respondents underestimated their retirement knowledge, expressing low confidence but obtained high scores in the quiz. The Washington Post
May millennial investors have opted to exclude stocks from their retirement portfolio, missing out on the strong gains posted by stock markets in recent years, according to this article on Kiplinger. Their adverse attitude towards stocks could be attributed to the market downturn from 2007 to 2009, which severely affected their parents' investments. Read the 10 reasons why stocks should be part of millennials' investments. Kiplinger
Saving $1 million for retirement is still possible for clients amid dwindling investment returns, according to article on Time Money. Those who want to have a sizeable nest egg need to start saving as early as they can, stay on course, and take advantage of all free money available in their retirement plans, such as their employer's 401(k) match contributions. They are also advised to choose investment options that charge the lowest fees possible, such as broad-based index funds and ETFs. Time Money