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

John Bogle says clients can save 66% of their retirement return by doing this
For Vanguard founder John Bogle, the "tyranny of compounding costs" makes the difference between investors who win and others who lose. Investment costs normally take about two-thirds of the gains clients make, according to this article, so smart investors opt for low-cost options. "Let's assume the stock market gives a 7% return over 50 years. If you get to 7%, each $1 goes up to $30. If you get to 5% (that would be 7% less the industry's typical 2% all-in costs), you get $10," said Bogle in an interview. "So $10 versus $30. You put up 100% of the capital, you took 100% of the risk, and you got 33% of the return! As I say to people, if that strikes you as a good deal, by all means do it!" --MarketWatch

John Bogle, founder of Vanguard, popularized index funds. Image: Bloomberg
John Bogle, founder of Vanguard, popularized index funds. Image: Bloomberg

Shifting to dividend stocks as retirement approaches
An investor who is a teacher by profession keeps a solid portfolio and is making an investment shift from growth stocks to dividend stocks as he approaches retirement, according to this article on Kiplinger. He has been consistent in buying shares of solid companies without any consideration for the day-to-day movement in prices, and is optimistic that the dividend income will enable him and his wife live a debt-free, active life in retirement. “Managing money and investing wisely are critical survival skills for teachers as well as rising generations of students.” --Kiplinger

Investors beware: Devil may be in details of annuities
Investing in variable annuities requires a broad understanding of difficult terminology and complex rules, says James Sanford of Sag Harbor Advisors. "Calculating what your account is really worth in the future may require understanding of present value accounting and bond math, as well as life expectancy analysis," says Sanford. "Not only do layperson investors lack these skills, but trained actuaries may only be suited for such analysis." --Fox Business

Don't let clients lose out on this Social Security benefit
Retired couples should consider using the restricted application strategy to make the most of their Social Security retirement benefits, according to CNBC. Getting "the primary worker's benefit as high as possible" is the key to optimizing retirement benefits, says an expert. When retired couples file for restricted application, "the higher benefit can be enjoyed by husband and wife while they are both alive." --CNBC

Will millennials ever be able to retire?
Despite the many financial obligations that make retirement saving a daunting task for young people, millennials can still start building their nest egg by becoming responsible in handling their finances, according to CNNMoney. They can also start stashing even a small portion of their earnings in retirement accounts, as the money could grow over time through compounding. Adopting a smart investment strategy that will allow them to keep a diversified portfolio is key to successful investing for retirement. --CNNMoney