One adviser shuns LTC insurance — but says this is a better idea

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

One adviser says not to buy LTC long-term-care insurance — but to do this instead
Seniors should not opt for a long-term-care insurance policy, according to this article on MarketWatch. Instead, pre-retirees and retirees alike should consider hybrid long-term-care policies that have the features of traditional long-term-care insurance and cash-value life coverage that grows over time as a savings and investment vehicle, says the expert. Another option for seniors is home equity conversion mortgage, which "offers flexibility while preventing you from depleting your assets early on.”

Bloomberg News

Younger Americans are growing more reliant on Social Security – but should they be?
A survey found that more millennials intend to depend on Social Security for income after they retire, according to this article on personal finance website Motley Fool. This could be a cause of concern as the program could reduce the benefits because of its financial woes. To help improve their retirement prospects and rely less on Social Security in retirement, younger workers are advised to start building their nest egg in an IRA or 401(k), which enables them to grow their savings over time through the power of compounding.

Credit hit: Why your credit cards shouldn't retire when you do
People are advised to keep their credit active in retirement, according to this article on USA Today. That's because they are likely to have longer time horizon in retirement, and having a strong credit profile enables them to get a loan for unexpected and emergency expenses, says an expert. "You never know when you're going to need something. Hang on to that credit. Otherwise, they're going to charge you high interest on your loan."

Here's how many Americans have nothing at all saved for retirement
A survey by GOBankingRates has found that about 50% of American households have no retirement account savings, according to this article on CNBC. Thirty-five percent of respondents also have less than $1,000 in their accounts, while 34% have no savings, the survey found. Many respondents also voiced regret not saving for retirement at an early age.

The government’s new retirement rule may not stop your adviser from giving you bad advice
As the new fiduciary standard takes effect, clients should remain cautious about the advice they receive from their advisers, according to this article on the Washington Post. That's because overly cautious advisers may recommend that they overhaul their portfolios in their best interests, a move that could lead to increased costs. “Advisers are required to consider the customer’s overall financial picture in determining what is in his or her best interest. That would include looking at how the rest of the couple’s portfolio is invested,” says an expert with the Consumer Federation of America.