Urge to splurge amid US retirement savings boom

Washington

RECENTLY, financial adviser Joseph Kelly visited a client who had seen the value of his retirement savings soar, thanks to a surging stock market.

"He said his account was up 18 per cent, and he asked me, 'What should I do with it?'," recalled Mr Kelly, who works in Berkeley Heights, New Jersey. His client was modestly wealthy, but Mr Kelly still suggested holding tight. The client had another idea: He wanted to take out US$75,000 to help his son buy a house.