Financial advisors can still be held liable for violating impartial conduct standards even though the Department of Labor decided to delay the implementation of the fiduciary rule until 2019, writes an expert on Morningstar. "The Department of Labor’s fiduciary rule’s major change was in the treatment of IRA assets," writes the expert. "However, corporate retirement plan assets, such as 401(k)s, are still under current ERISA rules, so rollovers from 401(k) plans to IRAs can be subject to lawsuits if done imprudently."
A certified financial planner advises clients engaged in retirement planning to account for their health care expenses after they retire, as the costs could be staggering, according to this article on CNBC. Citing data from Fidelity, the expert says that health care expenses could hit $275,000 for a healthy 65-year-old couple retiring in 2017. Pre-retirees and retirees should review their Medicare coverage, and consider buying long-term care insurance or contributing to a health savings account to prepare for the cost.
Many experts say that owning a home could be a boon for retired couples, as they can tap their home equity via a reverse mortgage to create a guaranteed income stream, according to this article on U.S. News & World Report. "In a worst-case scenario, you can sell the home and then rent. It gives you a fall-back plan," says a certified financial planner. However, homeownership may not be for everyone, as retirees could face hefty maintenance and repair costs, real estate taxes, and utility bills.
Medicare Part B enrollees who avoided the past premium increases because of the "hold harmless" provision can expect their premiums to increase next year, according to this article on financial website TheStreet. "After several years of no or very small increases, Social Security benefits will increase by 2% percent in 2018 due to the cost-of-living adjustment (COLA). Therefore, some beneficiaries who were held harmless against Part B premiums increases in prior years will have a premium increase in 2018," according to a statement from the Centers for Medicare & Medicaid Services.
