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b'With Ben Steverman, Reporter \\u2013 Bloomberg News



In a bit of optimism for retirees, Ben Steverman says America\\u2019s retirement preparedness is not all doom-and-gloom, and there is a lot average Americans can do to be financially ready for retirement. He starts with talking about Social Security \\u2013 and say \\u201cit\\u2019s there\\u201d \\u2013 that there\\u2019s enough money in the program through 2033, and beyond with likely new measures over the years. He also has good things to say about Medicare, and will take care of bare necessities.

For those without a pension, for consistent lifetime income, investors should look at investments that can provide a steady stream of retirement income, and consider options such as Reverse Mortgages to tap into the equity they\\u2019ve built up over decades. He also recommends Target Date funds - where an investor provides his retirement date and the fund automatically rebalances his portfolio allocation between stocks and bonds as he nears retirement date \\u2013 so investors themselves don\\u2019t have to worry about portfolio rebalancing over time. Target Date funds are simple and have a low structure but they really only work if all your retirement money is in target-date funds\\u2026 which is not the case for 62% of all holders - who mix and match them with other investments to \\u201cdiversify\\u201d and lose about 2% in performance compared to those who go all-in with target-date funds. So a mix-and-match approach changes your risk profile in ways that typically do not benefit your portfolio, and this 2% under-performance can significantly impact your portfolio over 20 to 30 years.

Ben also reveals, surprisingly, that despite the millennial generation\\u2019s much-touted aversion to the stock market, 84% of their retirement assets are invested in stocks, while baby-boomers hold a disproportionate 69% in stocks \\u2013 perhaps more than they should in percentage terms - despite being much closer to retirement. His bottom-line recommendation \\u2013 stocks are a great investment vehicle over the long-term but - because markets tend to be volatile \\u2013 it\\u2019s not where you should park savings intended for tuition or a mortgage down-payment.'