Social Security is 66% of retirees' primary source of income — that's a problem

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Social Security is 66% of retirees' primary source of income and that's a problem
Two-thirds of retirees consider Social Security their main source of income in retirement, according to this article on personal finance website Motley Fool, citing a study by Transamerica. The findings present a problem, as Social Security benefits are meant to replace only 40% of the seniors' preretirement income. This means that many retirees should consider creating other sources of retirement income, such as running a small business or renting out a property.

1 in 5 millennials with debt expect to die without ever paying it off
A report from shows that little over 60% of millennials are unsure whether they can ever pay off their debt, according to this article from CNBC. Those who are in this situation are advised to create a comprehensive plan to get rid of debt even while addressing other finances. For instance, they should consider saving at least 10% of their incomes for retirement, instead of using all their savings to pay off debt, says an expert.

When markets are tough, don't look
Investors are advised to avoid listening to news about a market slowdown, especially if they have a long time horizon before retirement, writes an expert on Morningstar. "Your ignorance of the day-to-day fluctuations of your portfolio will likely yield blissful results," explains the expert. "For those that have more immediate spending needs (retirement, a large purchase, and so on), it’s more difficult to tune out. That said, positioning your portfolio more conservatively can help."

How this early retiree is coping with the stock market’s losses in 2018
Investors are advised to brace for worse times in the stock market this year after a bad performance in 2018, according to this opinion article from MarketWatch. They should also ensure that they have enough liquid assets for living expenses, consider alternative investments if they are seasoned investors who can afford to lose assets, and rebalance their portfolio only when they’re more than 5% off their target allocation, writes the expert. "The important factor is diversification. Staying diversified over long periods with minimal portfolio turnover has been the best strategy for me."

This article originally appeared in Financial Planning.
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Retirement readiness Retirement income Social Security Social Security benefits Small business Stocks Investment returns