Advisors are not immune to peer pressure in financial planning, writes Carolyn McClanahan of Life Planning Partners. Two fallacies advisors may believe are the idea that firms must grow to survive and that firms need to be large to retain talent, notes McClanahan.
A survey by Home Instead found that 53% of preretirees who plan to leave their job in the next five years anticipate going back to work at some point. The need to generate additional income was the most common reason given, but respondents also cited staving off boredom and keeping a sharp mind.
The decision of whether to pay off a mortgage in retirement depends on a number of factors, financial experts say. Among them are how long you plan to stay in your home, whether you have enough retirement savings and how high your interest rate is.
A report released this month found that contractors say many of the risks they face today are not insurable and that risk management has to evolve to keep up with changes in the industry.
The number of college students age 35 and older was 2.2 million in 2015 and is projected to grow to 2.4 million by 2026, according to the National Center for Education Statistics. Going back to school later in life could mean a hit to retirement savings, and those doing so should avoid borrowing from a 401(k) to pay for it, says advisor Sean Moore of Smart College Funding.
A report from the Federal Reserve Bank of Minneapolis shows that between 1971 and today, lower-income Americans have grown poorer, while those in the top 10% of wealth distribution are nearly three times as wealthy. Economists attribute this in part to the fact that the housing market has not fully recovered from its prerecession peak, while the stock market is about 50% higher than before the recession.
The pricing of qualified longevity annuity contracts is getting better as bond yields rise and insurers bring new products to the retirement market, writes former Treasury Department policy advisor Matt Carey. "If you're older than 45 but not too far into retirement, have average or above-average health and have between $250,000 and $5 million in retirement savings, a QLAC could be a good choice," he writes.
Allianz Life has made its annuity portfolio available on the digital Envestnet Insurance Exchange. Advisors can use the exchange to evaluate how an annuity product would affect a client's portfolio without having to load new software or enter client data manually, said Corey Walther of Allianz Life.
Although professional athletes tend to make money faster than the average client, there are a number of similarities that can be drawn between them and other high-net-worth clients, writes Terry Sandvold. He discusses the need for budgeting, strategic spending and making disability part of the long-term-planning discussion.