Our daily roundup of retirement news your clients may be thinking about.
Retirees have to stay in a nursing facility that can provide the medical care services they need but finding the best home for them can be challenging for their families, according to an article on Kiplinger. Retirees and their loved ones may start their search for nursing homes by visiting Medicare's website where they can compare rates and their facilities, and they may do a background check of these homes in a state health department website and other sources. Retirees should visit the facility, ensure it recreates the ambiance of a home, and read the contract before making a decision. Kiplinger
Investors in their 20s and 40s are advised to hold a moderate ETF saver portfolio, which consists chiefly of stock ETFs but also includes high-quality bonds that are expected to perform better over the next two decades, writes Christine Benz, director of personal finance at Morningstar. Such a portfolio enables investors to hold bonds and cash at the front end, making them less vulnerable to sequencing risk as they approach retirement, Benz says. "Should the new retiree encounter a bum market early on, he or she can spend the portfolio's cash and bonds while leaving the equity portfolio in place to recover." Morningstar
There are many things that clients have to be grateful for in investing, according to an article on MarketWatch. These are the power of compounding, Social Security benefits, and dividends. Other things that investors have to be thankful for are index funds, low trading costs, and losing stocks on sale. MarketWatch
Young investors think that they can take on as much equity risk as they can since they will have a lot of time to recoup their losses before they retire, according to an article on The Wall Street Journal. However, it is not all right for these investors to lose all their money, says a financial adviser. Predicting losses can be very challenging for millennial workers, so they need to adopt a conservative approach when investing their 401(k) assets and increase their stock allocation after receiving earnings from their investments in six months. The Wall Street Journal
A client who has started receiving retirement benefit is entitled to survivor benefit on her ex-spouse's record, but the survivor benefit may or may not be bigger than her own benefit, according to an article on Forbes. She may consider deferring her retirement benefit until 70 and take her excess survivor benefit before she reaches that age. The excess survivor benefit is the difference between her survivor benefit and her retirement benefit. Forbes