Our daily roundup of retirement news your clients may be thinking about.
Seniors easily fall a victim to scam artists because they feel isolated, loneliness and cognitive deterioration; and scammers target the older victims "because that's where the money is," according to this article on CBS Moneywatch. To avoid becoming a victim, clients are advised to refrain from making investing decisions when they are emotional or lured by people who compel them to act as soon as possible. They also need to look for places where it is safe to invest and surround themselves with people who are trustworthy. CBS Moneywatch
Clients need to know as much information as possible about retirement planning, including Social Security and other possible income sources in their golden years, according to this article on CNBC. The Social Security Administration has teamed up with three digital financial advisory firms to help workers make an estimate on retirement benefits based on various factors. Before estimating the benefits, clients need to know about such concepts as full retirement age, qualifications for Social Security, maximum benefit and the best age to start collecting. -- CNBC
401(k) participants are advised to take advantage of their employer's match contributions whenever possible, but also to be aware of the plan's investment fees, according to this article on Time Money. They may also reduce the cost by using the plan's self-directed brokerage window to choose lower-cost index funds or cheap target-date funds. If there is no brokerage window, a traditional or Roth IRA is another option to save for retirement. Time Money
Buying life insurance coverage provides security, but the decision-making process can be complicated, according to this article on The Motley Fool. To make things less confusing, there are two main types of life insurance--term and whole life, and these two varieties differ a lot. The main difference is that term life coverage can be viewed as temporary insurance, while whole life insurance is permanent. The Motley Fool