4 strategies that can help create durable income in retirement

Register now

Our daily roundup of retirement news your clients may be thinking about.

4 strategies that can help create durable income in retirement
To build a strong portfolio that can generate the needed income in retirement, investors should consider blue-chip stocks that pay high dividends, according to this article on Kiplinger. Clients should also consider preferred stocks from the same companies, as these stocks have both equity and fixed-income characteristics, and diversify their portfolio by including alternative investments, such as real estate. Another viable option is to annuitize their savings for contractually guaranteed income in retirement.
Should you use your retirement to start a business?
Clients have the option to take a Rollover as Business Startup from their 401(k) plan or IRA to finance a business, according to this article on MarketWatch. Such an option allows them to withdraw the funds without triggering a penalty or tax bill, but could wipe out a significant portion of their savings if the business fails. Those who take this option also miss out on potential gains on their savings and face costly fees.

Is it ever a good idea to borrow from your 401(k) plan?
Although 401(k) participants are allowed to borrow from the plan, personal finance experts advise against it, according to this article on CNBC. "It's not a loan; it's a withdrawal, and it's a really bad idea," says a financial advisor. "Using the money should be your very last resort. If you still have a television set or jewelry, you haven't exhausted all your options."

The 7 most popular retirement destinations for seniors
Sun City West, Ariz., Green Valley, Ariz., Laguna Woods, Calif., and Punta Gorda, Fla., are among the top destinations for retirees, according to this article on Motley Fool. The list, prepared by Money magazine, is based on several factors critical to retirement, such as affordable homes, low taxes and access to good healthcare services. Other towns that made it to the list are Iona, Fla., Rancho Mirage, Calif., and Seal Beach, Calif.

Why life insurance is essential for retirement planning
If properly utilized, life insurance can be a very useful part of a person's retirement income plan, according to this article on Forbes. "It helps loved ones recover from financial risks and unexpected costs, increasing their chances of reaching long-term goals and achieving dreams," says an insurance agent. "Thinking about financial protection and retirement can seem overwhelming, but as your life changes so does your financial situation."

For reprint and licensing requests for this article, click here.
Retirement planning 401(k) Investments