Which asset allocation strategy should retirees use?

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Which asset allocation strategy should retirees use?
Retirees using a dynamic asset allocation approach in investing may opt for current market valuation or their funded ratio as basis for the allocation, writes Wade Pfau, professor at The American College, in this article on Forbes. When using the valuation-based asset allocation, retiree investors lower their stock allocation when the portfolio is very likely to experience a big decline in value, writes the expert. On the other hand, retirees whose asset allocation is based on their funded ratio curb their portfolio's volatility when they have "enough assets to just get by with meeting their retirement spending goals using a low-volatility portfolio."
Everything you need to know about reverse mortgages
Seniors have the option to tap into their home equity by taking a reverse mortgage to create a new income stream, according to this article on MarketWatch. Clients who get a reverse mortgage are not required to make monthly principal or interest payments, and they may opt to have a line of credit instead of receiving the loan proceeds as a lump sum. They may also repay the mortgage using the proceeds from the sale of the property.

These five cities have everything you are looking for in retirement
Cities in the Midwest dominated the list of best cities to retire from consumer research firm GoodCall, according to this article on CNBC. The list is based on various factors, including state income taxes, healthcare costs, weather, crime rates, and recreation and entertainment. Average healthcare costs in the top-rated cities on the list were 5% lower than the national average. "Because seniors anticipate more health problems, they are also looking for abundant and affordable health care, and places with better tax environments to make their money go further," says an analyst.

Can I own more than 1 IRA?
Clients would be better off saving in a traditional IRA and a Roth IRA for retirement, according to this article on Motley Fool. Distributions from the two accounts receive different tax treatments, which will give them greater flexibility and control over their retirement income and tax liability. Having two IRAs will also enable clients to have more providers and subsequently more investment options.

Battle isolation by staying engaged
People are likely to get isolated after they retire, and clients can avoid this by rethinking their retirement and addressing this issue in their retirement plan, according to this article on Kiplinger. “Building the social capital you’ll need in retirement is just as important as saving for your nest egg,” says an expert. “One of the silliest mistakes older people make is to retire to a warmer climate where they don’t know anyone. They realize as they get older, they need some help, and no one’s around.”

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