Our daily roundup of retirement news your clients may be thinking about.

High-dividend stocks are no substitute for low-yield bonds

Retirees should avoid replacing low-yield bonds in their portfolio with high-dividend stocks since this strategy could lead to additional risks, according to this article on MarketWatch. Historical data also doesn't back the idea that owning dividend-paying stocks is less risky than owning a more diversified stock portfolio. Retirees can still expect to spend down their portfolio's principal even with the substitution strategy, so it doesn't matter much if they get dividends as long as they spend down the principal within reasonable limits. -- MarketWatch

How and when clients should apply for Social Security

Clients who have decided to start receiving Social Security benefits may file their application through the Social Security Administration's website or by calling the agency's hotline, according to this article on The Motley Fool. They may also visit the local Social Security Office. Clients may apply if they reach age 61 and nine months but will start receiving the benefits when they turn 62. -- The Motley Fool

Parent education loans can ruin your clients' retirement

Parents who have parent education loans struggle to pay off the debt, subsequently hurting their ability to save for retirement, according to this article on Time Money. Parents can usually pay off their PLUS loans within 10 years if the total debt is lower than their annual incomes, says Mark Kantrowitz, a financial aid expert. They are advised to limit their total education loans to 50% of their income if they are within five years of retirement, the expert adds. -- Time Money

5 things your client should know about Social Security

Clients who are paying into Social Security are better off knowing the amount they contribute to the system and the age they are eligible to start collecting the benefits, according to this article in U.S. News & World Report. They also need to determine the monthly benefits they are likely to receive starting at a given age as well as the benefits they are entitled to get in case they become disabled. Clients are advised to know the benefits that their family will receive when they die. -- Yahoo Finance

When clients should file for Social Security retirement benefits early

Knowing the right time to start collecting Social Security retirement benefits depends on the client's personal circumstances, according to this article on CNBC. When developing a claiming strategy, the decision should be based on the client's financial need, retirement plan and health conditions. Retirement assets, marital status and other beneficiaries also need to be considered before clients decide when they should start getting the benefits. -- CNBC

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