5 biggest retirement savings mistakes to avoid

5 biggest retirement savings mistakes to avoid
Underestimating longevity is one of the mistakes that clients should avoid when preparing for retirement, according to this article on USA Today. They should also avoid overestimating their wage-earning years and ensure that they start saving for retirement as early as possible. Another misstep that retirement savers should avoid is not diversifying their investment portfolio. It is also wrong to put their children's education costs ahead of their retirement security.
9 retirement decisions that can change your future
While some people are either so obsessed about retirement that they worry too much, or so optimistic about their prospects that they leave everything to fate, clients may be better off taking "the middle course" to achieve the desired results, according to this article on MarketWatch. The article tackles nine important decisions that people need to make and explains how these decisions can have a significant impact on the quality of life that they will have in the golden years.

Why millennials need to save twice as much as boomers did
BlackRock in a report says that millennials should not rely on the markets to boost their retirement investments and that they will need to save more than their elders did to secure their golden years, according to this article on Money. This means that millennials have to save as much as 25% of their salary for 40 years to get the same level of comfort that baby boomers have achieved in retirement, the report says. “Our hope is that people take action now to get the benefit of compounding over time,” says an expert with BlackRock.

Don't roll the dice when it comes to 401(k) rollovers
Clients who change jobs should consider rolling over their old 401(k) assets to their current plan, according to this article on CNBC. By consolidating their multiple 401(k) plans, clients can monitor their assets, rebalance their portfolio and follow a more consistent allocation plan. However, leaving the 401(k) assets with the former employer could be a better option for some clients, says a certified financial planner. "If there's a great plan in place, and they're not going to be charged any extra administrative fees, I don't see a rollover as a necessity."

Ask Larry: Should I file at 62?
A divorcee who was born after Jan. 1, 1954 is deemed to be filing for her own Social Security retirement benefit if she applies for a divorced spousal benefit on her former husband's record at age 62, according to this article on Forbes. This also means that both benefits are reduced and she receives the higher amount between the two benefits. The actual benefit is about 30% lower than what she would receive if she opts to wait until the age of 66 to file for the benefits.

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