Prudence In Retirement Funding

  • April 14, 2016

The financial services industry is complicated to say the least.  Financial Advisers are under more and more scrutiny and time consuming regulations.  These regulations are all designed to protect consumers.  Some do and some don’t.  But that’s another blog!  Suffice to say that Financial Advisers are constantly learning and adapting to new requirements and practices. Plus the number of products and services out there is almost limitless.  Tough job, indeed!  I am proud to say that I have relationships with Financial Advisers that have truly benefitted retirees.  Like the vast majority in their industry, they are dedicated, knowledgeable and absolutely client centered.  Now, a new rule has been thrown at them.  It’s a broad rule that in general directs Financial Advisers to be prudent and among many other concepts it requires a look at alternatives to the “traditional” treatment and sources of retirement funding and income.  Coincidentally or not, this rule comes at a time when Financial Advisers are being encouraged by their industry publications and their company and individual efforts to re-examine the HECM (reverse mortgage) program.  This recent, more favorable look at the program is largely a result of the Reverse Mortgage Stabilization Act of 2013, which addressed many concerns.  Some of those concerns were valid and some were not.  In any case, the HECM program is now perceived as an absolutely legitimate, safe option in retirement planning when prudently applied.  Should it be a part of the required prudent approach?  See the discussion here.