Older Americans may have to postpone retirement under GOP plan

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Older Americans may have to postpone retirement under Republican health bill
Experts say that older workers might be forced to delay retirement to keep their employer-sponsored health insurance once the GOP bill that would replace the Affordable Care Act becomes law, according to this article on MarketWatch. That is because the bill could result in a significant increase in health insurance premiums for older workers. “It seems entirely plausible that the new rules would discourage older workers from retiring or going out on their own to start a new business — if it means giving up employer-sponsored health coverage,” says an expert with Kaiser Family Foundation.

Taxonomy of retirement income bond ladders
Investors who hold retirement income bond ladders usually have two types of ladders, one-time ladders and rolling ladders, according to this article on Forbes. One-time ladders are designed to be spent down over time, as they serve a temporary purpose, such as providing income until Social Security benefits start. In contrast, rolling ladders are extended over time because of factors, such as stock market valuations, current interest rates and recent market performance.

IRA taxes in 2017: What you need to know
Clients who want to contribute to an IRA for 2016 have until April 18 to make the contributions, according to this article on personal finance website Motley Fool. For 2016, they can contribute as much as $5,500 ($6,500 if they are 50 and older) to a traditional IRA, and they may deduct the entire contribution or a fraction of the amount if they contribute to a 401(k) or other similar retirement plans, as they are subject to income limit rules. Clients may not be allowed to also contribute to a Roth IRA if their earnings exceed the income threshold, but contributing to a Roth is better option for clients who expect to move to higher tax bracket in the future, as Roth distributions are exempt from taxes.

Best ways to invest a 401(k) surplus
A study has found that people are saving more money in 401(k) plans, and experts say that 401(k) participants with extra cash to save should consider a more aggressive approach to boost their return potential, according to this article from U.S. News & World Report. These 401(k) investors may want to pick riskier investments such as stocks, especially if they are between the ages 20 and 40, and they should set a long-term goal. Clients who have more money to save for retirement should also consider investing outside the plan, such as a Roth IRA, which is a good place to achieve tax diversification for their retirement income.

How to improve your readiness for retirement
People should increase their knowledge about personal finance to make themselves more prepared for retirement, according to this article on USA Today. They should also be more open to discuss money issues and aim to close the gap between what they want to save for retirement and what they are actually saving. It also helps to have a positive financial role model and to understand the language of finance so they can focus on their goals, develop a good retirement plan and execute it properly.

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