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Millennials can retire early — if they avoid these mistakes

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

Millennials can reach retirement early — if they avoid these mistakes
Millennials clients who want to retire early should avoid a few missteps to achieve their goal, a Forbes contributor writes. These mistakes include not having health insurance, taking on a huge student loan debt and falling victim to peer pressure, the expert writes. "Retirement may seem like a lifetime away but starting to think about it at 25 will have you in a much better position when you’re 65. Avoiding massive financial mistakes when you’re young is vital to reaching financial independence."

A client's guide to 401(k) vesting
Workers who receive their employers’ matching 401(k) plan contributions are advised to be vested in the plan, according to this article in Yahoo Finance. "Vesting in your 401(k) simply means that funds contributed on your behalf by your employer may be forfeited if you were to leave your employer before becoming fully vested," a CFP says. "Vesting restrictions do not apply to funds you've contributed yourself — only what your employer contributes."

Women are overly reliant on Social Security
About 32% of women expect to rely on Social Security as their primary source of income after they retire, according to a survey by Transamerica in this article from Motley Fool. This is a big mistake, as average Social Security benefits can cover about 33.7% of average expenses in retirement, according to the article. Women are advised to work for at least 35 years, review their earnings record regularly and delay their retirement benefits to maximize their benefit payouts.

Despite the exodus, all of the mutual funds and ETFs on the list posted net gains for the year.
December 11

Fund industry has yet to crack the retirement-income code
Retirement-income funds are a great option for clients who want to convert their savings into post-career income, a CFA writes in Morningstar. "These funds are often designed to be the terminal portfolio for investors who are investing their retirement assets in a target-date fund," according to the expert. "After the fund reaches its target date, many employer plans will eventually roll over the assets to a retirement income fund."

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