Our daily roundup of retirement news your clients may be thinking about.
What divorced clients need to know about Social Security
Clients who are divorced should have been married to their ex-spouse for at least 10 years in order to qualify for Social Security benefits on their former spouse record, according to Money. Clients also should be at least 62 at the time of filing and should not have remarried when they start collecting the benefits. Their ex-spousal benefit will have no impact on their former spouse's retirement benefits. --Money
Everything your clients need to know about their IRAs
Clients who have not contributed or don't qualify for an employer-sponsored retirement plan during a given year are eligible to open a tax-deductible traditional IRA, according to MarketWatch. Also allowed to contribute to a traditional IRA are single individuals who participate in a 401(k) plan but have less than $71,000 in adjusted gross income, according to this article. --MarketWatch
How many funds are needed for a diversified portfolio?
Retirement savers who want to build a balanced, diversified portfolio should focus on the different types of funds and the breadth of securities they hold, according to CNNMoney. A diversified portfolio is not achieved by holding as many funds as they can. They should strive to build a portfolio that will offer wider access to the stock market and have enough bonds to keep it afloat during a bear market.--CNNMoney
Don't let clients forget these retirement essentials
Clients planning for retirement should be sure to have emergency funds that can cover six months of living expenses and a standing fund for items that will need to be replaced in the future, according to MarketWatch. Their retirement plan also should account for survivor's benefits, long-term-care, taxes and investment costs. Clients are advised to engage in annual re-planning to adjust their retirement plans according to current and emerging trends. --MarketWatch