Our daily roundup of retirement news your clients may be thinking about.
Five common mistakes to avoid in volatile markets
Retirement-age investors are advised to avoid making drastic decisions amid market volatility as these moves could end up wreaking havoc on their portfolios, according to this article on MarketWatch. They need to avoid timing the market and changing their investment portfolio based on speculations about market performance in the short term. Clients also need to stay on track despite news about market changes, to avoid trading as much as they can and to take just the right amount of risk to help them achieve their investing goals. --MarketWatch
Millennials can't wait to wipe out debt: Survey
Paying down debt is the top priority of nearly two-thirds of millennials, but 51% of the respondents expect not earning enough could hinder them from becoming financially sound, according to a survey by USA Today and Bank of America. Becoming debt-free, having an ample amount of savings including "resources for the future" can be challenging for millennials, says Mark Avallone of Potomac Wealth Advisors. "They should be worried. Someone in their 20s, even on a modest income, will need to save $1 million or more (for retirement)." --USA Today
How to save money during Medicare open enrollment
Clients who want to avoid the hassle of shopping for the right Medicare coverage during open enrollment may get the information they need from the program's website, according to this article on CBS Moneywatch. Hiring an independent consultant can also be a big help and the consultation fee would be minor compared with the savings they would get for having the right coverage. Clients may also consider seeking guidance from local senior center or nonprofit organizations, which provide free assistance in finding suitable health care coverage for seniors. --CBS Moneywatch
IRAs for the self-employed
The simplified employee pension IRA is a good place for self-employed Americans and small business owners to save for retirement, according to this article on Nasdaq. The SEP IRA is very simple to set up and involves a small amount of expense and paperwork. However, SEP IRA's benefits wane if more employees are added to the plan, so business owners with many workers are usually better off in a 401(k) plan. --Nasdaq
How to become a 401(k) millionaire
Millennial workers are advised to start making small contributions to a 401(k) plan as early as they can if they want to see their account grow to $1 million by the time they retire, according to this article on CNBC. They also should strive to contribute up to 20% of their pretax income to the plan and take advantage of the employer match contribution. Millennials have the time on their side, so investing in stocks can help them boost their returns and see their money grow through compounding. --CNBC
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