Our daily roundup of retirement news your clients may be thinking about.
The past year has taught retirement investors that stocks will produce yields despite volatility, according to this article on Time Money. Also, investors have learned last year that diversification results in significant gains, but the outcome may fail to meet their expectations. Another thing to be learned from 2014 is that it pays to brush aside market predictions and other forecasts. Time Money
Investing heavily in equities is a risky decision especially for pre-retirees, who are supposed to start leaning towards fixed-income investments, according to an article on DailyFinance. Those who are approaching retirement need to evaluate their asset allocation and secure their fixed-income sources, such as Social Security, pension and lifetime-payout annuities. They also need to adjust their budget if their fixed income isn't enough to cover the expenses. Daily Finance
Existing market conditions need not be a major concern for retirement investors since they are temporary, according to this article on MarketWatch. Clients should also stop worrying about small financial obligations, such as a child's wedding, and instead focus on the repercussions of daily decisions involving money. Their concern should be whether their portfolio is performing as well as the market, not about how they can beat the market. MarketWatch
There are stocks that need to be avoided by investors, particularly those who have retired and depend on their investment portfolio for income, according to this article on The Motley Fool. Retirees are advised to exclude "high-beta" stocks from their portfolio, as these stocks plummet when the market underperforms, says Matt Frankel. The Motley Fool
A widower may start collecting a surviving spouse's benefit at age 60 and switch to his own benefit, which will be higher, when turns 70, according to this article on Forbes. He may also avoid filing for and suspending his own retirement benefit when he reaches his full retirement age so he can take a lump sum payment of his suspended benefits while earning delayed retirement credits. Forbes