Singles are saving less and feeling more insecure about retirement than married couples are, according to a TD Ameritrade survey. "Having a spouse to split the mortgage, household expenses and insurance can make basic living costs more manageable," says Lule Demmissie of TD Ameritrade, who notes tax advantages for couples filing jointly.
By purchasing a single-premium immediate annuity, people requiring nursing-home care can avoid Medicaid's requirement they exhaust their retirement savings before getting assistance, according to lawyer and Medicaid expert K. Gabriel Heiser. It is important for individuals to put a Medicaid asset-protection plan in place before they need nursing-home care, he said.
Among millennials who are saving for retirement, 46% said they rely on a human advisor for help, while 24% use a robo-advisor, according to a survey by the loan refinancing firm LendEDU. A robo-advisor is more likely to lose their money than a human advisor, said 62% of respondents.
A full 79% of employees report their health care costs have climbed this year, and 56% say they've had to cut back on retirement savings as a result, according to a Merrill Lynch survey. Half of those surveyed said they did not know how to calculate future out-of-pocket health care.
Securities and Exchange Commission Chairman Jay Clayton issued a statement on the increasing need for cybersecurity in the wake of the Equifax data breach and an attack on the SEC's EDGAR electronic filing system. Clayton stressed that advisors, broker-dealers and investment companies are prime targets for cybercriminals because of the client data they hold.
About 80% of Americans getting close to retirement who work with an advisor would shift to another one if they thought making the change would increase their Social Security benefits, a survey from the Nationwide Retirement Institute found. Among people who are already retired, about half would switch advisors to maximize their Social Security benefits, according to the survey.
While research shows the use of financial technology can have a positive effect on firms' return on investment, advisors are frequently overwhelmed by the plethora of available options, writes Anthony Stich of Advicent. He offers a checklist to help advisors select the most suitable solution for their business.
Gary Droz of MainLine Private Wealth comments that many of his clients are preoccupied with fears of an imminent market downturn and the effect it will have on their portfolios. He says he seeks to calm their concerns by pointing out that downturns are inevitable and advising them not to change their investment strategy or asset allocations.
While women still face a gender pay gap, their inclination to put other family expenses first and reluctance to discuss financial matters are also hurting their retirement savings, writes Kerry Hannon. The recent Women's Institute for a Secure Retirement symposium explored possible solutions, including forming financial book clubs and taking advantage of employers' automatic enrollment and automatic escalation retirement programs, if available.
As people reach retirement age, they often find themselves facing a choice of where they want to live. Financial planner Amanda McCollum lists key priorities, such as staying in reach of family and friends, vetting an area before deciding to move there and working with an advisor to establish the affordability of a proposed move.
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