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Ret plans - info for employees


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Questions to Ask When Your Company Changes Its 401(k)
"[1] Why are we changing retirement plans? ... [2] How will the new options compare to the old program's funds? ... [3] What kind of 'glitches' can I expect from the switch?... [4] What are the key dates during a 401(k) switch?... [5] Are you going to keep me in the loop during the change process? ... [6] Should I change my beneficiary forms?" (U.S. News & World Report)
401(k) Distribution Rules: Frequently Asked Questions
"When am I eligible for a 401(k) distribution? ... What's a hardship distribution? ... When can I rollover a 401(k) distribution? ... Can I leave my money in my 401(k) plan after I terminate employment? ... When must I start taking Required Minimum Distributions from my 401(k) account? ... How are 401(k) distributions taxed? ... How are distributions of Roth 401(k) deferrals taxed?" (Employee Fiduciary)
Why Wait to Retire to Take Control of Your 401(k)?
"If you're 59-1/2 years old and still working, you have the ability to roll over money from your 401(k) into an IRA.... There are four reasons why you should consider an in-service rollover: [1] You are in control of your money.... [2] An IRA gives you more investment options to choose from.... [3] There are more safe havens for your money in an IRA.... [4] You can automatically set up your account as a multigenerational IRA (or 'stretch IRA')." (Chad Slagle, via Kiplinger)
Your Retirement Plan: Set It, But Don't Forget It
"When it comes to planning for retirement, there are three commonly automated arrangements that warrant a one-off, stop-and-think review from time to time: beneficiary designations, plan participation and investment allocation." (Certified Financial Planner [CFP] Board of Standards, Inc.)
Choosing the Savings Strategy That's Right for You (PDF)
"Depending on a person's current health, family history, and lifestyle, he or she may be more or less inclined to maximize savings for medical expenses. Depending on a person's charitable giving strategy or the size of her or his family, she or he may be more or less likely to buy life insurance. Income and age make a difference, as well. That said, there is a general savings hierarchy that some experts suggest as a way to start thinking about a strategy." (Lockton)
Planning for a Safe Withdrawal Rate: Introducing the Actuarial Budget Benchmark (ABB)
"Your Actuarial Budget Benchmark is a relatively transparent annual calculation of your recurring spending budget in retirement based on your spending goals and your data, but based on a specific set of assumptions about the future, that may change each year. The calculation is designed to approximate the market value of your future spending liabilities.... The ABB can also help [to balance] a retiree's desires to avoid unnecessary fluctuations in spending and mitigate sequence of return risk." (Ken Steiner, FSA Retired)
The Basics of Target Date Funds
"Target-date funds can help retirement investors solve a few problems. With so many options on a retirement savings plan menu, it is hard to know what to choose. But selecting good investments is only one part: Investors must also pay attention to overall portfolio diversification and not take on too much risk by being concentrated too heavily in any one area.... That's where target-date funds come in." (Morningstar)
Which 401(k) Strategies Work Best?
"The most effective tools in retirement savings are not bells and whistles. They are simple, quiet and consistent.... [1] Putting savings on auto-pilot.... [2] Higher savings rates.... [3] Keeping costs low." (Forbes)
The 411 On Your 401(k): What You Should Know About Your Retirement Savings
"[1] How much money am I saving? ... [2] Do my contributions automatically increase? ... [3] Do I have a Roth option in my 401(k) plan? ... [4] Can I access my money while I am working? ... [5] How do I take my money out when I retire?" (Forbes)
The Dangers of Planning on Working Longer
"[N]early two-thirds of retirees left the workforce earlier than expected because they were laid off, reorg-ed out of a position, or due to general unhappiness with a job.... [On] a company-wide level, delayed retirement can increase overall workforce costs by 1 percent to 1.5 percent.... [That] goes a long way in explaining why employers may be more inclined to focus on 'financial wellness' strategies to get workers ready to retire sooner than programs to help workers delay retirement." (CNBC)
[Discussion] Are Participant Loans Really Taxed Twice?
"The author of the article purports that merely because the loan repayments are made with after-tax dollars, the compensation needed to repay the loan represents a double taxation (i.e., because every dollar of loan payments = $1.33 of comp). But the analysis does not take into account that the $10,000 of pre-tax money was received without paying any taxes." (BenefitsLink Message Boards)
The Biggest 401(k) Participant Misperceptions
"I only need to contribute up to the maximum company match ... It is OK to take a participant loan ... Rolling a 401k account into an IRA is a good idea ... My 401k account is a good way to save for college, a first home, etc.... I should stop making 401k contributions when the stock market crashes ... Actively trading my 401k account will help me maximize my account balance ... Indexing is always superior to active management ... Target date funds are not good investments ... Money market funds are good investments ... I can contribute less because I will make my investments will work harder." (Lawton Retirement Plan Consultants)
Quiz: Do You Get the Most Out of Your Benefits?
"If you scored a 9 or higher, congratulations! Chances are that you see your employee benefits as an integral part of your overall compensation. If you scored an 8 or lower, you may be leaving money on the table by not taking full advantage of everything your employer offers. If you have access to financial coaching via your workplace financial wellness program, consider setting up a time to talk to a planner about how you can fully maximize the value of your employee benefits." (Financial Finesse)
Know What to Expect from Social Security Benefit Estimators
"[If] participants use one of the free tools analyzed in this report, they will likely receive reasonably accurate benefits estimates. However, depending on the tool, participants may be more or less likely to absorb, draw meaningful inferences about and act on information. Therefore, the differences in the way Social Security benefit estimators communicate results is key, because when it comes to retirement planning, accurate information is worth little without understanding and action." (Corporate Insight)
A New Measure of Financial Literacy: The Personal Finance Index (PDF)
26 pages. "U.S. adults are split 50/50 between those who could and those who could not answer over one-half of the P-Fin Index questions correctly.... Personal finance knowledge is lowest in the area of comprehending risk; on average, 39% of these questions were answered correctly.... While 10% of young adults (under age [45] have a relatively high level of financial literacy, 30% have a relatively low level." (TIAA Institute and Global Financial Literacy Excellence Center (GFLEC))
Why You Shouldn't Stick With Your 401(k) Plan's Default Settings
"Sticking with a low default savings rate might cause you to miss out on part of the 401(k) match your employer offers.... [T]he more money you save up to the annual contribution limit, the bigger the dollar value of your tax break.... [C]heck out whether the target-date fund's underlying investments, the rate at which the fund grows more conservative and the fees charged suit your risk tolerance and investment needs." (U.S. News & World Report)
The Actuarial Approach: Much More Than Just a Measure of Where You Stand Financially
"The funded ratio proposed by [Russ Hill, Sam Pittman, and Bob French] divides assets by aspirational liabilities (the individual's spending goals) to help the individual determine where he or she stands in meeting retirement goals and how much the individual's assets would need to be to meet these goals.... [I]ndividuals can also use this basic actuarial equation to develop an actuarially calculated spending budget for the current year[.]" (Ken Steiner, FSA Retired)
How Much Do You Know When It Comes to Preparing for Retirement?
"Even if there is some debate among professionals around how much the average person needs to save, nearly three-quarters (74 percent) of respondents underestimated how much is needed.... [N]early half (47 percent) underestimated how big an impact relatively small savings can have over time.... Thirty-eight percent of Americans estimated they would only need to make their hard-earned savings last for about 12-17 years, which could leave some at risk of running out of money in retirement.... While 17 percent of respondents answered [correctly that housing would be the largest expense in retirement] (and 13 percent of those aged 55-65), a larger number of respondents (69 percent) thought health care would be the largest expense." (Fidelity)
Text of SEC Investor Bulletin: Robo-Advisers
"Before making a decision about whether to invest through a robo-adviser, or in deciding which robo-adviser might be best for you, you should do your own research. Make sure the robo-adviser and the investment portfolio it puts together for you are a good match for your investment needs and goals, and that you understand the potential costs, risks, and benefits of using that particular robo-adviser. [This bulletin highlights] some issues you may want to consider in making these important decisions." (U.S. Securities and Exchange Commission)
Guide to Retirement, 2017 Edition
44 detailed presentation slides. Topics: [1] Retirement landscape: Factors that shape today's retirement experience; [2] Saving behaviors and best practices while saving for retirement; [3] Spending considerations for living in retirement; [4] Investing: Building a retirement portfolio. (J.P. Morgan Asset Management)
How to Avoid Borrowing from Your Retirement Plan
"Don't think of your retirement account as a giant ATM.... Have an emergency fund.... Consider other options." (Financial Finesse)
Using Interactive 'Nutrition Labels' for Financial Products to Assist Decision Making for Long-term Saving (PDF)
29 pages. "[The authors] developed an interactive information label to assist consumers with retirement saving decision-making.... 450 users [were exposed] to one of four user interface conditions in a retirement saving simulator where they made 35 yearly decisions under changing circumstances. [The authors] found significantly better ability of users to reach their goals with the information label. Furthermore, users who interacted with the label made better decisions than those who were presented with a static information label. Lastly, [they] found the label particularly effective in helping novice savers." (Junius Gunaratne and Oded Nov, New York University)
Four Keys to Winning the Financial Security Game
"As individuals get close to retirement or reach retirement, their financial priorities generally shift somewhat. While they still must grow their assets (generally by investing them), they must also protect their (now presumably much more significant) assets to make sure that they last for the rest of their lives.... In addition to possibly investing their assets more conservatively than younger individuals, retirees and near-retirees will generally select different forms of insurance than younger individuals to protect against relevant risks." (Ken Steiner, FSA Retired)
Designers of Retirement Calculators Strive for Better Fidelity to Real Life
"To improve the accuracy of their forecasts, developers of calculators are using more complex formulas for model's assumption on the rate of return on investment assets.... To address volatility, some calculators perform a Monte Carlo simulation of a range of outcomes randomly chosen.... Some models base their rate of return on historic market data on the performance of asset classes over the past century. If the future is not like the past, then the accuracy of this approach will suffer." (Mind Over Market)
Rise in Interest Rates Lowers the Cost of Retirement Income
"Today, investors are enjoying retirement income costs lower by as much as 14% versus a few months ago ... which helps investors estimate how much annual retirement income their current savings can generate starting at age 65." (planadviser)
Why Retirement Calculators Disagree on How Much You Need to Retire
"If you plan to use a retirement calculator you should keep in mind that retirement calculators rely on assumptions about the future that may turn out to be wrong ... Retired software developer Darren Kirkpatrick tested several calculators in 2012 and found the forecasts less than convincing.... Some calculators err by relying on inflation rates that are too low for the long term and err again by assuming a rate of return on investments that may be too high. '[That] gives you a bit of insight into where you stand financially today, but it tells you virtually nothing about what will happen in the future,' he has stated." (Mind Over Market)
What Employees Need to Know About Section 457 Plans
"As with 401(k) plans, participants in 457 plans have pretax contributions deducted from their paychecks.... Unlike the majority of large-company 401(k) plans, however, most 457 plans don't match employee contributions. Public-sector employees are more likely to receive a traditional pension than private-sector workers. Those two factors may explain why only about 55 percent of public-sector employees with access to a 457 plan contribute to it." (Chicago Tribune; subscription may be required)
Avoid Disaster When Designating Beneficiaries on Your Retirement Plan
"What happens if there is no beneficiary designation or the named beneficiary or beneficiaries predeceased the account owner? ... What else can go wrong ... Beneficiary designations are incomplete ... Beneficiary designations name an obsolete beneficiary ... Beneficiary designations aren't thought through.... While any beneficiary has the option of taking the entire account balance immediately, doing so means lumping the income in one year which can result in paying tax at higher marginal rates, and foregoing the benefits of stretch-out. [Certain options] provide the opportunity to avoid or minimize unfortunate results[.]" (Moss Adams)
Pre-Retirement Checkup: What You Should Do in the Five Years Before You Retire
"Looking at savings, Social Security claiming strategies and other financial issues is a key part of your checkup. But you also want to consider lifestyle issues such as when you'll want to stop working full time and how you plan to spend your time instead." (U.S. News & World Report)
[Guidance Overview] IRS News Release 16-171: Plan Now to Get Full Benefit of Saver's Credit; Tax Credit Helps Low- and Moderate-Income Workers Save for Retirement (PDF)
"The saver's credit helps offset part of the first $2,000 workers voluntarily contribute to IRAs and 401(k) plans and similar workplace retirement programs. Also known as the retirement savings contributions credit, the saver's credit is available in addition to any other tax savings that apply." (Internal Revenue Service [IRS])
Insights Into Retirement Planning Behavior (PDF)
"Only one-in-five [plan participants] (20%) said they reviewed or made adjustments to their retirement plan in the last year.... [M]ore than twice as many reviewed or made adjustments to their phone, cable and/or internet service (43%) or social media account profiles (43%).... During the past year, millennials were nearly four times as likely (63%) to update their social media profiles than they were to review or make adjustments to a retirement plan (17%)." (Voya Financial)
A Comparison of Free Online Tools for Individuals Deciding When to Claim Social Security Benefits
"This note provides information on six publicly available online retirement planning tools that focus primarily or exclusively on the Social Security claiming decision. It explains their advantages and limitations, what types of information the tools require of the user (inputs), and what types of information the tools provide (outputs).... The six tools ... are available to the public, do not require the user to create an account with the organization, and are free to use." (U.S. Social Security Administration [SSA])
Fact Sheet: What Is a Qualified Domestic Relations Order and Why Should I Care?
"A retirement plan can be the largest asset in a marriage. Nonetheless, retirement plans are often forgotten or overlooked during divorce, in part because divorce is so complicated and in part because a divorce can occur years before retirement -- and who's thinking about retirement when it's 10 or 20 years down the road? If they don't have the right kind of court order, people going though divorce could neglect a significant portion of the marital assets and put themselves at risk of economic insecurity in retirement." (Pension Rights Center)
Using Multiple 'Data Points' to Determine How Much You Should Spend
"[While] the development of a reasonable spending budget is an important part of an individual's spending decision process, it is but one 'data point' of several that may be considered.... [O]ther possible data points that may also be useful in your spending decision process[:] Applying the ABC ... The ABC with recommended assumptions ... ABC run-out tabs ... ABC 5-year projection tab ... Historical record ... Your gut instinct." (Ken Steiner, FSA Retired)
What to Consider When Investing in Target Date Retirement Funds
"Any given glide path may be too steep for some people and too shallow for others, depending on their circumstances. As an investor, you can compensate for that by choosing funds dated later or earlier than your targeted retirement date. If the 2030 fund gets too conservative too fast for your taste, for example, you could choose the 2040 fund instead." (Los Angeles Times; free registration may be required)
Three Retirement Plan Head Scratchers (PDF)
"[W]hen it comes to saving for retirement, sometimes the decisions that come after enrolling in your employer's plan can be as difficult as making that initial choice to save. How do you know you are making the right decision from a tax perspective? What about other benefits options? And what if you need money? Is your retirement plan the best place to get it? The answers to these questions are unique to you and your personal situation, but a few rules of thumb can help." (Lockton)
Getting the Facts Straight about Qualified Plan Loans
"[Is] it worth taking a loan from your retirement plan? In short, no. However, it is still important to weigh the options of taking such a loan. [This article describes] the major pros and cons of taking loans from your employer's retirement plan." (Castle Rock Investment Company)
How to Calculate the Value of Your Benefits
"It's 'open enrollment' season ... [and] a good time ... to estimate how much the benefits you choose are worth to you: Health Insurance (typically $5,000 -- $30,000) ... Retirement Plan (typically 3-6 percent of your salary in matching contributions) ... Stock Purchase Plan (typically 10 to 15 percent of market value per share purchased) ... Disability Insurance ($2,000 to $5,000 per year) ... Life Insurance ($250 to $500 per year) ... Employer Contribution to FICA (7.65 percent of salary) ... Unemployment Insurance (0.3-1.5 percent of salary) ... Your company may offer other benefits such as tuition reimbursement, pre-paid legal assistance, commuter benefits, health and wellness programs, access to group long term care insurance[.]" (Financial Finesse)
SEC Provides Free Online Financial Planning Tools
Tools at the SEC's Investor.gov web site include: 401(k) and IRA Minimum Distribution Calculator; Compound Interest Calculator and Savings Goal Calculator; Social Security Retirement Estimator; Retirement Ballpark Estimator; Mutual Fund Analyzer; 529 Expense Analyzer; and a link to a searchable database of investment advisers who have filed Form ADV. (U.S. Securities and Exchange Commission)
How Does Student Debt Affect Early-Career Retirement Saving?
"The estimated relationship between student debt and participating in a retirement plan ... is small and statistically insignificant ... Contrary to expectations, individuals with a large loan balance who were offered a plan are more likely to accept it, though the estimated relationship is small. Some evidence indicates that bachelor's degree-holders who have student loans have lower retirement assets at age 30, though the estimates are statistically insignificant, and retirement assets levels are unrelated to the size of their student loan balances." (Center for Retirement Research at Boston College)
[Official Guidance] Text of Final Regs: Definition of Terms Relating to Marital Status
"This document contains final regulations that reflect the holdings of Obergefell v. Hodges ..., Windsor v. United States, ..., and Revenue Ruling 2013-17 ... and that define terms in the Internal Revenue Code describing the marital status of taxpayers for federal tax purposes.... While [the regulations] will continue to provide that registered domestic partnerships, civil unions, and other similar relationships not denominated as marriage under state law are not recognized as married for federal tax purposes, [they are clarified to] ensure that there is a point of reference for which state law is applicable when determining whether the alternative legal relationship is recognized as marriage under state law. Accordingly, ... the terms 'spouse,' 'husband,' and 'wife' and 'husband and wife' do not include individuals who have entered into a registered domestic partnership, civil union, or other similar relationship not denominated as a marriage under the law of the state, possession, or territory of the United States where such relationship was entered into, regardless of domicile." (Internal Revenue Service [IRS])
Choosing a Beneficiary for Your IRA or 401(k)
"[Y]ou need to know the impact of income tax and estate tax laws in order to select the right beneficiaries. Although taxes shouldn't be the sole determining factor ... ignoring the impact of taxes could lead you to make an incorrect choice. In addition, if you're married, beneficiary designations may affect the size of minimum required distributions to you from your IRAs and retirement plans while you're alive." (CAPTRUST Financial Advisors)
Sizing Up Online Retirement Calculators
"[M]any of the tools offered online ask for relatively few inputs, which should be a warning sign that the results may be less accurate than those that require more comprehensive information ... At a minimum, the calculator should ask about different sources of income, expected living expenses during retirement and all forms of assets that will be available as a means of support[.]" (Financial Planning)
Evaluating an Early Retirement Offer
"What's the severance package? ... How does all of this affect your pension? ... Does the offer include health insurance? ... What other benefits are available? ... Can you afford to retire early? ... What if you can't afford to retire? Finding a new job ... What will happen if you say no?" (CAPTRUST Financial Advisors)
Eight Ways Women Can Improve Their Retirement Security
"[1] Don't be intimidated by the jargon ... [2] Increase your savings rate ... [3] Invest found money ... [4] Seek professional help ... [5] Take advantage of workplace benefits ... [6] Unique investment strategy ... [7] Don't cash out ... [8] Plan ahead for widow's benefits." (MarketWatch)
Financial Education for Today's Workforce: 2016 Survey Results (PDF)
80 pages. "Two in five respondents feel a responsibility to educate on pension and benefit options, encourage retirement savings and help participants/employees become financially literate managers of their money.... Among organizations offering financial education, the most common topics are retirement plan benefits, preretirement financial planning, investments and retirement plan distributions.... [T]he most effective methods of providing financial education were: Free personal consultation services; Voluntary classes/workshops; and Web-based/online resources and courses." (International Foundation of Employee Benefit Plans [IFEBP])
Boomer Expectations for Retirement 2016: Sixth Annual Update on the Retirement Preparedness of the Boomer Generation
19 pages. "There are about 76 million Baby Boomers in the United States, more than 40 million of whom are already age 65 or older.... They will retire at a rate of 10,000 per day through at least 2030, when almost 73 million Americans, comprising more than 20 percent of the U.S. population, will be age 65 or older.... 21 percent of Boomers plan to retire prior to age 65, and 59 percent at age 65 or older. This includes 26 percent who plan to retire at age 70 or later.... Only 39 percent of Boomers have tried to figure out how much they need to have saved for retirement. Of those who have, a third did not include health care costs in their calculations. Only 55 percent of Baby Boomers have money saved for retirement, down from 58 percent last year and from more than three in four in prior years." (Insured Retirement Institute [IRI])
How Women in All of Life's Stages Can Prepare for a Secure Retirement (PDF)
12 pages. "Women who reach age 65 are on average expected to live 2.3 years longer than men who reach the same age.... Women have lower account balances than men despite needing higher ones -- women who retired in 2012 are expected to spend 15% more time in retirement than men (20.5 vs. 17.9 years).... Women have a higher chance than men of being impacted financially by chronic or terminal illnesses.... What can women do to overcome these retirement challenges? Plenty, if they make smart moves at every stage of life." (BNY Mellon)
Resources to Learn More About the Saver's Credit
"The IRS' Retirement Savings Contributions Credit, also known as the Saver's Credit, is available to low- to moderate-income workers who are saving for retirement through a qualified retirement plan such as a 401(k), 403(b), IRA, or new myRA, yet just 25 percent of American workers with annual household incomes of less than $50,000 are aware of the credit[.]" (Transamerica Center for Retirement Studies)
Retirement Readiness: A Work in Progress
"There's a big gap between what plan sponsors think their participants know about saving and investing -- and what participants actually know. By identifying the disconnect in participants' understanding of savings strategy, investment options and income potential, sponsors can pinpoint strategies to correct them more effectively." (BlackRock)
$1 Million Question: How Much Is Enough for Retirement?
"The advisers factored in an estimated average monthly Social Security benefit for a couple at $2,212 a month with a cost of living adjustment of 2.6 percent per year. They also assumed a rate of return on invested savings of 6.5 percent a year with inflation estimated at 3.5 percent each year. They found that a person who wants a retirement income of $50,000 a year for the rest of his or her life would need a lump sum of about $500,000. For an annual income of $75,000 the person would need about $1 million saved; and savings of $1.5 million for an annual income of $100,000 combined with Social Security." (Pittsburgh Post-Gazette)
Five Things Young Investors Can and Should Do to Save for Retirement
"[S]aving for retirement in your 20s doesn't have to be hard or expensive (promise). Here are five ways to avoid missing out on saving for retirement in your 20s [1] YOCO (translation for nonmillennials: You only compound once) ... [2] Treat yo' self (to your match) ... [3] You wanna be a millionaire (actually, you do) ... [4] Tackle the debt dilemma ... [5] The power of Roth." (Vanguard)
How Your Employer's Pension 'De-Risking' May Increase Your Pension Risk
"A de-risking transaction is intended to do what its name says: Decrease plan risk. But the intent is to decrease the employer's plan risk. The result may be that your pension benefit is at greater risk.... In the absence of a change in the law, here are some of the most important questions you should ask[.]" (Prof. Dana M. Muir, in The Wall Street Journal; subscription may be required)
The Benefits of Making a Formal Written Plan for Retirement
"Eighty percent of those with a formal written plan have estimated how many years their assets will last into retirement, nearly double of those who don't have a formal written plan (42 percent).... [P]re-retirees and retirees who have formal written retirement plans are more likely to roll over and consolidate their assets within two years. They are also more likely to convert a portion of their assets into an annuity within two years[.]" (LIMRA)
Rule of Thumb Withdrawal Strategies Just Don't Cut It for Retirees
"[S]imply adding 4% of a retiree's accumulated savings to other retirement income payable during the year to determine a spending budget may either overstate or understate an actuarially sound spending budget. And this is only one of the problems associated with the 4% Rule or any rule of thumb that focuses on 'tapping your savings' rather than properly coordinating with other sources of retirement income to develop a reasonable spending budget." (Ken Steiner, FSA Retired)
Have You Checked Your Retirement Plan Lately?
"Have you experienced any life changes? ... Reexamine your risk tolerance ... Is your asset allocation still on track? ... Regaining your balance ... Revisit your plan rules and features ... Could you add a little more each pay period? ... A little maintenance goes a long way." (Asset Strategy Advisors)
Bad Idea: Rolling a 401(k) Into an IRA, Part III
"[M]ost of the time it does not make sense for your 401(k) plan participants to roll their 401(k) account balances into IRAs when they leave your employment.... It is difficult, and most times impossible, to find stable value or guaranteed fund investment options available in IRA accounts.... In a 401(k) plan, not only is the employer a fiduciary, but the investment advisor associated with the plan is likely to be one as well.... the average return in an IRA account from 2000 to 2012 was 2.2%. The average return in a 401(k) plan account for the same period was 3.1%." (Lawton Retirement Plan Consultants)
Pension Lump Sum Payouts and Your Retirement Security (PDF)
"A guide for consumers considering their retirement payout options from a private-sector plan.... Questions to ask before accepting a lump sum: ... [1] Will you be at risk of running out of money? ... [2] Will you have the necessary investment skills? ... [3] Is your money protected? ... [4] Is a combination of payouts possible? ... Regardless of the payout you choose, detect and correct errors in your pension or lump sum calculation ... If you choose a lump-sum payout: [1] Plan for tax consequences ... [2] Make your money last ... [3] Protect your money from fraud and scams." (Consumer Financial Protection Bureau)
More Advisers Will Discuss Social Security Strategies with Clients Next Year
"Next year a quarter of financial advisers said they will increase the amount of time they dedicate to discussing Social Security with clients, compared with how much time they spent on the subject this year ... A year ago, only 8% of advisers planned to bump up client time dedicated to Social Security discussions ... About 20% of advisers said next year they will spend more time talking with clients about cash-flow planning and 19% said income-tax planning would become a larger focus of discussions[.]" (InvestmentNews)
How Do I Know When to Retire?
"Here are three reasons you might want to retire sooner rather than later ... [1] Finances: Because retirement may not be as expensive as you think.... [2] Fulfillment: Because you may want more time to pursue fulfilling activities outside of work.... [3] Relationships: Because you may want to devote more time to relationships outside of work." (Pension Consultants, Inc.)

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