Our daily roundup of retirement news your clients may be thinking about.
Use a Roth conversion to achieve lower tax bills
Transferring assets from a traditional IRA or 401(k) plan into Roth IRA is a decision that will have a great impact on a client's tax obligations and may be a good move depending on individual circumstances, according to Forbes. This article discusses how a 60-year old retiree with $600,000 in traditional IRA balance can lower her future required minimum distributions from Social Security and subsequently eliminate taxes on her benefits when she reaches 70½ by converting an amount of her IRA to Roth IRA. --Forbes
Tax planning for retirees takes several forms
Tax planning can be challenging as clients can approach it from different angles, so retirees are advised to hire a financial planner to make sure they will not miss any tax breaks and make better decisions involving taxes, according to MarketWatch. Clients can also get subsidies for health insurance under the Affordable Health Care Act, while couples may opt to delay the Social Security of the spouse with the bigger claim value to maximize their benefits. Clients who acquired a property using their IRA money can pay required minimum distributions from other IRA accounts they have when they reach 70½, but may face a problem if they have no other accounts. --MarketWatch
7 habits of highly successful retirement savers
Most people who succeed in building their nest eggs for retirement are early savers and do not get loans to buy fancy cars, according to U.S. News and World Report. They also pay off their loans gradually, acquire a house with a bigger down payment, and never cease to learn about investing and personal finance. Successful retirement savers are focused on reducing investing costs and don't make drastic investment decisions when markets fluctuate. --Yahoo Finance
5 secrets to saving for the future while enjoying life now
Young clients can save enough for retirement while enjoying their life at present if they first understand and constantly monitor their cash flow, says a financial planner. They also need to be certain about the things they truly want and strive to place a cap on their monthly bills. Clients also must have automatic savings for their current and future goals and set aside cash for spontaneous spending, the expert says. --CNN Money
Answers to 5 of Twitters most-asked questions about retirement
A Reuters expert answers five questions that are commonly asked by people on Twitter. The expert says that Roth IRA is a good option for young adults as withdrawals from such an account are not subject to tax. The looming crisis in retirement security can be addressed by expanding Social Security system given the system's risk pooling and progressive approach to income distribution. Financial advisers cannot be fully replaced by software-driven services online, but these tools provide some guidance at cheaper rates. --CNN Money
- Advisor Opportunities in Aging Population?
- Advisors Looking for More Training, Guidance on Social Security Tools
- Portfolio Construction: Looking Beyond Assets
Register or login for access to this item and much more
All Bank Investment Consultant content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access