Labor Department Proposes Rule to Save Retirees Billions

Financial advisers would have to adhere to more stringent standards when giving advice on 401(k) plans, IRAs and other retirement accounts under a rule proposed Tuesday by the U.S. Department of Labor. The proposed rule would protect people saving for retirement from being steered into accounts with high fees and commissions that benefit the adviser at the expense of the saver. It would force financial professionals to act in the best interest of their clients — a move that advocates say would …

Retiree Health Care Costs May Gobble Up Your Social Security Benefits

A new study projects that a couple retiring this year could spend 67 percent of their lifetime Social Security benefits on out-of-pocket health care costs. And that’s even when couples have Medicare Parts B and D with supplemental insurance. The news gets worse for today’s 55-year-olds who plan to retire in 10 years at age 65, the year in which they’re eligible for Medicare. According to the 2015 Retirement Health Care Cost Data Report, almost 93 percent of that couple’s Social Security …

The Cost of Perpetual Parenting of Adult Children

For many boomers, the empty nest seems more like the empty bank account. After college, kids boomerang home for a few months or years, driving up monthly household expenses. Even when they leave, they often return to the “Bank of Mom and Dad” for help with costs from new cars to camp for the grandkids. All those added outlays are impacting millions of boomers, causing many to delay or modify retirement plans, according to a new study by Hearts & …

Wanted: Your Best Tips for Saving Money

We all have ways of saving a buck — maybe a lot more — through savvy shopping or careful planning. Perhaps you picked up these moves over the years; maybe you just learned about them. Whether your tips are old or new, we want to hear about them, to share with other readers. We’re looking for savings for the home — from the kitchen to the garden — on health care, beauty, fashion, home decorating and personal technology, as well as travel and entertainment. Please …

New U.K. Annuity Reforms Are a Step Too Far

After nearly a decade where the United Kingdom has been the gold standard for retirement savings policy, it is about to take a step that it may regret. The U.K. has a retirement savings system that will enable virtually all of its workers to supplement their state-paid pension with retirement savings. When it is fully phased in, they will have access to a low-cost, diversified savings platform that uses automatic enrollment to encourage participation. However, starting in April, the requirement …

Getting Real About Fund Fees

So it’s time to get real about mutual fund fees. Sure, they’re lower than ever for many funds, especially those that track an index. In fact, the average fund fee is now 1.25 percent, according to Chicago-based Morningstar. Still, even this amount is too high and needlessly gives away most of your expected future gains. To understand this, consider the following: You have to frame your gains in real, after-inflation returns. In other words, your portfolio must match inflation just to keep your spending power intact. You …