The GOP is looking for ways to pay for tax cuts — 401(k)s may bear the cost

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The GOP is looking for ways to pay for tax cuts. Your 401(k) may bear the cost.
Workers would have to pay taxes on their contributions to an employer's sponsored 401(k) plan under the Trump administration's tax proposal, according to this article on Washington Post. However, experts oppose the move, as 401(k) plan's tax deferral is a key factor in encouraging workers to save for retirement. The Investment Company Institute “strongly supports preserving the current system of tax deferral, which has encouraged millions of Americans to save for retirement,” says the institute's spokesperson.

Does life insurance deserve a place in your retirement portfolio?
A life insurance policy can be a good addition to an individual's retirement portfolio, according to this article on Kiplinger. The benefits and financial protections that a life insurance policy offers could play an important role in his or her overall retirement plan. Life insurance policyholders also get tax advantages for the policy's cash values and death benefit proceeds. Investments within the policy also grow tax-free while loans from the policy are not subject to tax.

Read this before getting a reverse mortgage
The Department of Housing and Urban Development has made changes to reverse mortgage rules to minimize the risk of the program, giving more reason for seniors to tap into their home equity and create an additional retirement income, according to this article on MarketWatch. Experts at Ohio State University say that a reverse mortgage can be an excellent option for retirees who want to rely on fixed income. “If originated as a line of credit, the borrower has a source of liquid funds to draw from in future emergencies that cannot be reduced by the lender if there is a shock to income or credit," say the experts.

How to plan for a victory lap retirement
A Victory Lap Retirement is an option for seniors who are planning on how they can spend their golden years, according to this article on Forbes. The idea, based on a new book by two retirement experts, simply enables seniors to not really retire and combine work and leisure between the time they resign from their full-time job and the time they decide to stop working for good. In a Victory Lap Retirement, seniors shift from a "survival mentality" to a "thriving mentality," say the experts.

Most people blow 70% of their money on 3 things — and cutting back could be the key to retiring much earlier
Clients may be overspending on housing, transportation and food, and reducing these expenses will enable them to save more for retirement and increase the odds of retiring early, according to this article on Money. By spending less on these budget items, people "can bank the difference," says an expert. "If you move to a smaller apartment, walk to work and cook at home, you could realistically increase your savings rate to 25%+ or even higher."

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