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How advisors are helping retirement savers through the coronavirus crisis

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Welcome to Retirement Scan, our daily roundup of retirement news your clients may be talking about

How financial advisors are helping clients through the virus crisis
Although financial advisors are uncertain about the outcome of the coronavirus-driven market downturn, they continue providing guidance to their clients, especially those who are already retired, according to this article in Bloomberg. An advisor says she warns her clients not to resort to buying even if they have liquid assets and stock prices are very attractive. “I don’t think the volatility will be over until we’re finished with this virus,” she says.

Ways women can get better at planning for retirement
Retirement planning can be more challenging to women than men, as female clients receive lower salaries and face a longer life average span compared with their male counterparts, writes an expert in MarketWatch. To reduce the stress associated with retirement, women are advised to review their overall financial situation, make the right investment and well-informed personal decisions, she writes. "The most important thing is to activate your strength — your savings mind-set — by getting the information and advice, and making the choices, that help you invest and manage your money effectively."

When clients should temporarily stop saving during the pandemic
Clients may need to temporarily stop contributing to their retirement accounts during the ongoing health crisis to build an emergency fund worth three to six months of living expenses, says a certified financial planner in this CNBC article. This option “is not ideal, but this will be a short-term change," he says. "Commit to start contributing again once you are back on your feet.”

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Is now the best time for clients to ignore their 401(k)?
Clients may be better off leaving their 401(k) plans amid the ongoing market downturn if they are on track for achieving their retirement savings goals, writes a Forbes contributor. "Unfortunately, not everyone is on track for a successful retirement. Uncertain times are scary and elicit a variety of emotions," he writes. "To the extent they make you think about your financial future, the timing could be right."

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