Whenever the federal government regulators create more regulations in any industry, there are always unintended consequences. Take the securities industry for instance; the SEC has put forth so many rules and regulations concerning financial planners and stockbrokers that most firms and most practitioners won’t even deal with people who have less than $500,000 to invest. As you know, this is less than 5% of our population, and less than 10% of retirees.
The sad statistic about most people being dead or broke at age 60 is actually a reality in America, even if we don’t like to admit it. What we need is local community financial planning mentors, coaches, and consultants for seniors. This way they will not be snookered into some kind of high commission annuity conversion plan of all their assets, or be sold a bill of goods for some type of limited partnership which will never work out.
There are far too many groups that are taking the money from seniors, and because of all the rules and regulations, most financial planners will not deal with those with less than $500,000 in savings, pension, or assets not including real estate. It is my contention that we should model a community financial planning system along the same structure as SCORE, or Service Corps of Retired Executives. These are folks who go out into the community and help small business people, and entrepreneurs.
Most of their services are free, and since it is a nonprofit group, it attracts volunteers and small business people who are starting out on a shoestring. It works quite well, and SCORE is to be commended. This is exactly what we need to promote, and get going on a national level in every community across the United States in my humble opinion. Please consider all this.