Mutual funds, which have topped $13 trillion, are the way many Americans interact with the financial markets. You may have come across mutual funds when you set up an individual retirement account or a company-sponsored retirement account like a 401(k).
A "basket" of stocks, bonds or both, mutual funds are seen as safer to own than individual stocks. Having many in one basket spreads the risk, especially over time. But high fees, lack of diversification, or a focus on short-term gains can put your nest egg at risk.
We wanted to hear what younger people are thinking about when it comes to retirement and the viability of Social Security. Here's reaction from 20- and 30-somethings in Nashville, Tennessee.
ROD KELLY: I don't expect it to be there and I'm not planning on it to be there. I'm doing what I can right now to put into, like, IRA, you know, or Roth funds to make sure that I don't have to depend on it.
When it comes to claiming Social Security benefits, there is no magic age. Today's boomers can begin collecting full benefits at 66, tap in early for a modified benefit at 62 or delay receiving benefits until 70.
But the importance of making a smart decision on how and when benefits are claimed can't be underestimated, says Mary Beth Franklin of Investment News.