Some wealth management firms are finding that solutions to two of the industry’s big stumbling blocks—succession planning and diversity—may be intertwined.  Indeed, a link between the two emerged when firms began to diversify their advisor staffs, according to executives. To read the full article in FinancialPlanning, click: Is Diversity the Key to the Succession Plan Challenge? ...

With the Social Security Administration’s recent update on its long-term financial health, advisors and their clients now have a new time frame for the anticipated depletion of the retirement program trust fund. Unless Congress acts, the trust fund is expected to run out of money in late 2034, at which point Social Security will be able to cover just 77% of retirement benefits. To read the full article in F ...

The key to implementing this suggested strategy is establishing auto-IRA plans to workers who lack a 401(k) option with a preset percentage of wages to be contributed to the plan.  This would create a retirement nest egg that would not be linked to any one employer, but rather would stay with the worker throughout a career. To read the full article in FinancialPlanning, click: Could this Simple Social Secur ...

The retirement software space is seeing increased signs of activity, as advisors seek more sophisticated tools to help clients plan a life after work. To read the full article in FinancialPlanning, click: Retirement Planning Space “Ripe for Modernization”. ...

According to a National Bureau of Economic Research (NBER) working paper, older persons today appear more likely to enter retirement in debt than in past decades.  Researchers examined older individuals’ debt patterns using the Health and Retirement Study (HRS) and the National Financial Capability Study (NFCS).  With the HRS, they compared cohorts of people on the verge of retirement (ages 56 to 61) as wel ...

Client confidence has climbed and that rosier outlook for the economy and the stock market is propelling robust flows into equities and retirement accounts, advisors say.  Allocations to stocks strengthened sharply, according to the latest Retirement Advisor Confidence Index—Financial Planning’s monthly survey of wealth managers—and helped to support further improvement in business conditions for the invest ...

Many Americans have not saved a sufficient amount to retire comfortably.  Financial advisors can help their clients determine not only when to retire, but also if they should consider working at least part time in their early years in retirement.  Here are a few questions to ask to jumpstart the retirement planning process with clients. To read the full article in FinancialPlanning, click: Is Your Client Re ...

Retirees with multiple retirement accounts are advised to have a tax-efficient way of tapping into these accounts to minimize the tax bite, writes Morningstar's Christine Benz.  Retirees who have reached the age of 70 1/2 should take required minimum distributions from tax-deferred accounts, while those who are younger should draw from their taxable accounts, selling assets with the highest cost basis first ...

What Tax Reform Could Mean for Annuities Republican lawmakers have said a tax overhaul framework would retain incentives meant to encourage retirement security, but uncertainty remains about the direction that reform will take.  This article summarizes several ways changes in federal tax laws could affect annuities, charitable giving, and other aspects of retirement planning. To read the full article in Thi ...

Preparing for Clients’ Cognitive Decline Older clients may experience cognitive decline and memory problems that can lead to loneliness and other negative emotions.  Understanding the ways in which clients' cognition may change—and helping them plan for intellectually stimulating activities—can lead to better outcomes in retirement. To read the full article in the Financial Advisor, click: This is Your Brai ...

Help Clients Kick-Start Their Charitable Efforts Here is a look at questions to ask and tactics to consider while working with clients who want to engage in charitable giving.  Among other strategies, clients may want to consider making multiyear gifts or donating to international causes.  The Adviser's Guide to Financial and Estate Planning, Volume 1, has an entire chapter dedicated to helping you learn ab ...

Questions for a Retirement-Preparedness Gut Check Pre-retirees should examine whether they direct too much money to goals other than retirement savings, take advantage of employer matching, and structure savings so enough pretax income is set aside.  Jonathan Clements states that other important considerations include how retirees will spend time once they stop working and whether there is a danger of outli ...

Navigating the New Social Security Rules Changes to Social Security rules have eliminated the file-and-suspend strategy for younger couples.  However, couples should still coordinate their claiming strategies, and there are various rules about disability benefits and divorced spouses to keep in mind.  PFP/PFS section members can listen to this podcast on the latest Social Security developments by Ted Sarens ...

Ditch the 4 Percent Rule.  Here's How to Handle Your Retirement Withdrawals It might be time to scrap the 4% retirement rule, as it could be unsafe if there are large portfolio losses in the early years of retirement.  Here are three factors to weigh when developing a financial plan. To read the full article in CNBC, click: An Alternative to the 4% Rule. ...

Self-directed IRAs and 401(k)s are increasingly popular.  CPAs are well-positioned to help clients ensure their retirement savings in these accounts do not fall into a prohibited transaction trap. To read the full article in AICPA, click: Don’t Let Clients’ Retirement Fall into this Trap. ...

Fraudsters target people of all ages, but older adults with retirement savings are particularly lucrative targets.  And the consequences of fraud and exploitation can have a devastating impact on older adults who depend on their retirement savings after they leave the workforce.  Steve Vernon provides some very helpful tips towards preventing this despicable crime. To read the full article in CBS Money Watc ...

We mentally deposit money in buckets of current income, current assets, and future income.  This instinctive categorization explains the popularity of so-called bucketing strategies for retirement income, whether segmented by time or type of spending.  Michael Kitces, contributing writer for Financial Planning, explains how advisers can help overcome their irrational expectations. To read the full article i ...

Older Americans Upbeat about Retirement, but Savings are Lacking for Some Fifty-nine percent of Americans between the ages of 45 and 65 said they were at least somewhat ready for retirement, according to a survey conducted in the middle of last month.  However, 22% of those surveyed said they had saved less than $100,000, and 27% said they had saved nothing for retirement. To read the full article in USA To ...

Some American workers are worried about their financial security in retirement, according to a Transamerica survey.  In this article, Todd Campbell looks at five common fears involving retirement and how they can be addressed. To read the full article in The Motley Fool, click: How to Address Common Concerns About Retirement. ...

How to Make up for Lost Time with Retirement Savings People who are behind schedule on retirement savings can take several steps to make up the difference.  These include making use of catch-up contributions, selecting funds with low investment fees, and postponing required minimum distributions, if possible.  Damian Davila offers some useful tips. To read the full article in Wise Bread, click: 7 Retirement ...