Our daily roundup of retirement news your clients may be thinking about.
Parties clash over Social Security disability trust fund
The Obama administration and Congress are in conflict over how to address the financial woes of the Social Security Disability Insurance program, which is likely to cut benefits for disabled workers by 19% in 2016 because of dwindling funds, according to this article in The Wall Street Journal. President Barack Obamas proposed budget wants to shore up the program by raising the portion of the payroll tax intended for the disability fund by 0.9 percentage point, a proposal that Republican lawmakers opposed because it should come with changes to fix Social Securitys overall financial health. Regrettably, President Obama isnt doing anything to ensure that this [shortfall] never, ever happens again, said Senate Budget Committee Chairman Mike Enzi, R., Wyo. --The Wall Street Journal
10 things every investor should know about asset classes
While diversification is highly recommended when putting up or maintaining an investment portfolio, investors should realize that such a strategy works only if it is done properly, according to this article on MarketWatch. Choosing the right asset-classes is crucial for investors to succeed in investing over the long term, so they are advised to pick only the best assets, put them together carefully and let the portfolio work for them. The article identifies 10 things about asset classes that investors need to know, including past performance, both short-term and long-term as well as the risk levels. --MarketWatch
Women mum about money, worry about retirement savings
A survey shows that 80% of women have ceased from sharing their financial concerns with family and friends, while 60% of them are worried that they will outlive their retirement savings. Although on the more positive side, 70% are saving for their golden years, according to this article on USA Today. "Women are good savers, which is terrific. The challenge is moving from saving the money to investing it wisely, says Kathleen Murphy of Fidelity Investments. --USA Today
5 investment assumptions that will cost you in retirement
People who are planning for retirement should avoid making assumptions that having a bad day when theyre retired is better than having a good day while at work, and that investing should be done during the accumulation phase, according to this article in U.S. News & World Report. They should also stop thinking that they can invest throughout their golden years without asking for help, and they are ready for retirement if their savings are equal to 25 times their projected annual spending. It is also wrong to assume that saving enough money is all that matters in retirement. --Yahoo Finance
Social Security Q&A: What can we do now if we didn't make optimal choices in the past?
A retired couple who opted to start collecting Social Security benefits at the age 62 can no longer redo their claiming strategy, according to this article on Forbes. While the husband is entitled to full retirement benefit because of a disability, repayment is not an option for the wife. She is advised to suspend her retirement benefit immediately and resume it when she turns 70 to earn delayed retirement credits that could increase her benefits. --Forbes
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