Briefing: Latest Retirement News (July 25 2019)
iStock
Here's the latest from the world of retirement-related news: Contributing to a Roth 401(k) and healthcare for folks retiring outside the U.S.
Commentary: Retirement bucket strategies can be ambiguous: The ambiguity of retirement bucket strategies could mean financial advisers risk mistakenly labeling particular expenses that a client considers vital as discretionary, writes Michael Kitces of Pinnacle Advisory Group. Retirement expenses must be correctly categorized to make sure they are covered by retirement assets, suggests Kitces.
SmartBrief/Financial Planning Online
Contributing to Roth 401(k) can cut taxes in retirement: About 70% of companies offer a Roth 401(k) option, but only 11% of employees participate, according to Fidelity Investments. Contributing to both a Roth and a conventional 401(k) is a good strategy for maximizing income and reducing the post-retirement tax burden, advisers say.
SmartBrief/CNBC
Healthcare solutions for those who retire outside the U.S.: Healthcare is an important consideration for retirees, and Medicare doesn't pay for most medical care received outside the U.S. Those who move outside the country after retiring might need to seek additional health insurance.
SmartBrief/The New York Times (subscription)
Annuity issuer debuts retirement-income websites: Annuity provider Global Atlantic Financial Group has introduced two websites to address retirement income: GetIncomeReady.com for consumers and IncomeReady.com for professionals. The professional site includes information on how to respond to consumer concerns about annuities.
SmartBrief/ThinkAdvisor
Why Americans should contribute more to their 401(k)s: Employees should be contributing 12% to 15% of their salaries to their 401(k)s, according to Vanguard, while the median contribution among US workers is less than 10%, including employer matches. A worker may want to save even more than 15% depending on stock performance and personal situations, Carla Fried writes.
SmartBrief/Money magazine