By Todd Wineburner

Lawmakers continue to talk about the “fiscal cliff,” but a Pontiac financial advisor says something called AG-38 might actually affect more people. Dave Gibson runs Gibson Financial Services and he’s warning people about what the government calls Actuarial Guideline 38. It determines how much money insurance companies need to have in reserve, and he says it will drive insurance costs up when it goes into effect. Gibson bases his prediction on the fact that more people are turning to insurance companies for retirement services, and generally living longer, meaning greater pressure on insurance companies resources. He adds that the changes might also mean lower returns on annuities and other financial devices.

Because of the pending changes, some companies are offering lump-sum payouts to their clients with annuities. Gibson says anyone holding those kinds of devices should talk to a qualified financial advisor before taking any action. Dave Gibson visits WJEZ every Thursday morning at 7:10.