Clients could be unknowingly sabotaging their Social Security
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Clients could be unknowingly sabotaging their Social Security benefits
Filing for Social Security at the wrong age is one way for seniors to reduce their retirement benefits without realizing it, according to this Motley Fool article. Clients could also fail to maximize their Social Security benefits if they don't work for at least 35 years, as their benefits are based on their 36 highest-earning years, according to the article. Unknown to many, retirees may also qualify for other Social Security benefits, such as spousal benefits, divorce benefits and survivor benefits, but fail to claim these benefits to add to their income.
Do clients need a trust if they have a will?
A will is a good estate planning tool that clients can use to leave a legacy to their loved ones, but it can be contested in court, a Forbes contributor explains. A revocable living trust could be a better option for estate owners who want to have some control over their legacy even after death, according to the expert. "Using a revocable living trust instead of a will means assets owned by your trust will bypass probate and flow to your heirs as you’ve outlined in the trust documents,” she writes. “A trust lets investors have control over their assets long after they pass away."
Don't just let your clients’ 401(k)s ride
Clients are advised to ensure they make the most of their 401(k) plans as they build their retirement savings, according to this article in USA Today. These plans offer valuable benefits, such as dollar-cost averaging and contribution matching by your clients' employers. Clients will also end up with bigger retirement savings in these plans because of tax-free compounding. “Since 401(k) assets represent 10% of U.S. households’ total financial assets as of the second quarter of 2019, they should command a commensurate amount of your focus,” according to an expert.
Steps clients can take to safeguard retirement
Clients are advised to start saving and planning for their long-term care as early as possible, as the cost of leaving this to the last minute could put their retirement at risk, according to this CNBC article. When creating a plan, clients are advised to consider whether they would live at nursing home or move to a continuing care retirement community, as well as decide when they intend to give up driving, according to the article. Clients should also prepare an advanced directive for future health care preferences and select a power of attorney to ensure their finances are taken care of once they experience cognitive decline.