Retirement Options

  • Read a couple of retirement related articles this week that I'd like to share. The first one is from CNBC.

     

    They talk about the fact that retirement isn't an all or nothing decision anymore. The article states: "About 30 percent of large employers — those with over 1,000 employees — offer workers some flexible retirement option, whether it is allowing older employees to work part time or in job sharing with colleagues, according to WorldatWork, a global association of human resources managers."

     

    Personally I think that's a good thing. Whether someone is looking for an early retirement in their 40s or a late retirement in their 70s, it's good to have choices. Many people don't want to work full-time, but don't want to retire full-time either. That they can decide to work 10, 20 or 30 hours for someone else or create their own part-time gig is great. It'll be interesting to see the variety of answers that people create for themselves.

     

    Another article discussed some of the investment options that we had in our retirement plans. It was titled: "Retirement savings choices are poised to shrink". According to the article: "Investors can expect limited options or higher fees in their retirement plans as brokerage firms are evaluating their pricing structures to comply with the fiduciary rule."

     

    A US News article explains the fiduciary rule. "Much has been discussed about the Labor Department's recently finalized fiduciary rule, which will hold all financial advisors who provide retirement investment advice to a "fiduciary standard" – or in other words, require them to put their client's best interests above all else."

     

    This was a case where the government created a rule to protect investors. Sounds like a good idea. Advisors should hold their clients' best interest in front of their own. But part of the result of the new rule is that some quality investments could be questioned so they won't be offered any longer. And those plans that want to offer those choices will have to spend more to justify them. Those costs will be passed on to the investor.

     

    I agree, we all like to be protected. But we should recognize that protection has a cost. In this case one of the costs for some of us will be less money available for our retirement.

     

    Keep on Stretching those Dollars!
    Gary


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