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

The right—and wrong—investing risks in retirement
Building a safe portfolio that provides the desired returns can be a daunting task, as performance of these investments can be volatile, according to this article on Money. High-yielding investments come with a significant risk, as exemplified by exchange-traded funds that own energy master limited partnerships. Morningstar claims that these ETFs offered an average yield of 7.6% but incurred 18.5% in losses. A better strategy for investors to deal with the risk and obtain a safe income from their portfolio is to pick stocks and adopt a more passive attitude to investing, and include fixed-income assets to balance the risks of stocks.

(Bloomberg News)
(Bloomberg News)

For family offices, fiduciary rules mean thinking about clients—and heirs
The new rule from Department of Labor that imposes fiduciary standard on financial advisers providing guidance on retirement accounts will not cause too much disruption on the financial services industry, writes an expert in The Wall Street Journal. The new rule will prompt financial advisers who do not observe the standard to adjust their strategies and business models, the expert says. "For advisers who own family offices, in particular, the rule reinforces the idea that financial strategy should be considered in the context of both present and future generations and that advisers have a responsibility to carefully consider the best interests of our clients and their heirs."

Not your grandma's retirement home: Check out this luxe living
Demand for active adult communities is on the rise as seniors are looking for a place where they can enjoy a more active life through the golden years, according to this article on CNBC. A senior couple opted to move into an adult community because of its lifestyle amenities, which include classes, lectures and a fitness center. "We've been fortunate. We've both worked for 30 plus years and been able to save and invest and all that stuff. So we have funds accumulated to get here," says the husband.

How to decide where you should retire
Clients who have to choose the place where they can retire should ask themselves how they intend to spend the extra time they have after they leave the workplace for good, according to this article on Business Insider. They should also consider how active they intend to be in retirement, what type of climate they prefer, how frequent they want to see their loved ones. Clients are advised to identify possible retirement locations and live there for a while to see if the place is the right one for them. "I think that's very important: To experience it without jumping all in and putting a down payment on a home," says a certified financial planner.

Is it ever a good idea to borrow from your 401(k)?
Clients should avoid making a loan from their 401(k) plans as much as possible, as this could hurt their retirement prospects, according to this article on The Street. 401(k) participants who borrowed from the plan are likely to reduce their contributions. "When you start borrowing form the plan, there are a lot of catches people don't understand. If you decide to leave the company, some companies demand payment in 60 to 90 days, and if you don't, the money becomes taxable," says a financial planner.