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Why We Need The Fiduciary Standard

Why We Need The Fiduciary Standard

Wed, Sep 01, 2010

It might rid the financial services marketplace of situations where the customer enters into transactions without knowing that there's an adversarial relationship, this well-known columnist believes.

My Tailor, My Fiduciary

My Tailor, My Fiduciary

Tue, Aug 31, 2010

The SEC could help investors distinguish between bespoke advice and off-the-rack advice that’s merely “suitable.”

Making The Case for Fixed Indexed Annuities

Making The Case for Fixed Indexed Annuities

Tue, Aug 24, 2010

Jack Marrion and friends offer hard evidence that FIAs pay off when other investments don't. Their analysis is compelling, but I'm not ready to convert.

Transamerica Launches "Bridge" GLWB

Transamerica Launches "Bridge" GLWB

Tue, Aug 17, 2010

The new Income Link rider pays out between 5% and 10% of the income base for a few years, then 4% for life. "It's designed for higher income in the near-term," says Dave Paulsen, Transamerica's national sales manager.

Why the Wealthy Should Buy SPIAs

Why the Wealthy Should Buy SPIAs

Tue, Aug 17, 2010

A recent study by a doctoral candidate at the University of Virginia examines all of the reasons why people don't buy income annuities--and reveals two hidden reasons why they should.

Process First, Not Product

Process First, Not Product

Wed, Aug 11, 2010

When clients discover that products have been sold to them without the adequate use of process, some advisors will surely face a day of reckoning, says the president of The Strategic Distribution Institute, LLC.

 Inflation-Indexed and Level Payout Funds from Barclays Bank

Inflation-Indexed and Level Payout Funds from Barclays Bank

Wed, Aug 04, 2010

“It's marketed as a gap product, such as between early retirement and pension benefits or to bridge until longevity insurance kicks in,” said Tamiko Toland, an annuity industry analyst at Strategic Insight, Inc.

Independent Fiduciaries to the Rescue

Independent Fiduciaries to the Rescue

Wed, Aug 04, 2010

With his National Retirement Security Plan, independent fiduciary Matthew Hutcheson hopes to bring lower fees, better management to small and micro retirement plans.

Reish & Reicher Comment on TDF Proposals

Reish & Reicher Comment on TDF Proposals

Sun, Jul 18, 2010

“We expect that the SEC proposals will be adopted much as proposed," says Fred Reish, the well-known ERISA lawyer. But a TDF expert says plan fiduciaries should do more than merely comply with them.

The Brilliant Gimmickry of TDFs

The Brilliant Gimmickry of TDFs

Sun, Jul 18, 2010

TDFs have always been a sales strategy more than an investment strategy, and we should recognize that.

Are Stocks Really Cheap?

Are Stocks Really Cheap?

Wed, Jul 14, 2010

Cash levels as a percent of assets reached a cyclical high of 12% in 1991. Today, that ratio is less than 4%. With mutual funds already nearly fully invested, where will the money come from to take stocks higher?

How Social Security Can Make Up for Lost Pensions

How Social Security Can Make Up for Lost Pensions

Wed, Jul 14, 2010

Under my plan, the SSA would tell people their benefit at a specific retirement age (either an earliest age or a "normal" age). Then it would show a simple set of penalties or bonuses for withdrawing money or depositing it with Social Security.

Mr. Smith Goes to the Patent Office

Mr. Smith Goes to the Patent Office

Wed, Jul 07, 2010

An actuary-turned-entrepreneur claims to have invented a cheap, benign, versatile new income distribution tool. But he’s coyly cryptic about its secret sauce.

The 4% Withdrawal Rule—Maybe Planners Have Been Wrong

The 4% Withdrawal Rule—Maybe Planners Have Been Wrong

Tue, Jul 06, 2010

The complexity of the typical retiree's cash flows makes it nearly impossible for a planner to apply a simple rule of thumb like the 4% strategy, even if he or she wanted to.

"Too Good to Last"

Thu, Jul 01, 2010

Curiosity about investments in secondary market annuities, which earn up to 9%, is growing. But these “factored products” are scarce—and virtually unregulated.

Five Ways to Adjust to a New Tax Landscape

Wed, Jun 30, 2010

A consortium of advisors who represent Securities America offered these suggestions for how investors and their advisors can adjust to the expiration of EGTRRA and JGTRRA at the end of 2010.

New VA Contracts from Smaller Issuers

Thu, Jun 24, 2010

After highlighting new VA contracts from big issuers last week, we now turn to four new products from second-tier or regional insurers, all of them with sturdy A-level strength ratings from Moody’s, Fitch and Standard & Poor’s.

Reflections of a VA-Selling Advisor

Tue, Jun 22, 2010

Jay Hauenstein, a dually-licensed advisor in Mississippi who manages about $10 million in VA assets, looks for contracts with strong roll-ups and death benefits.

The Year of Living Less Dangerously

The Year of Living Less Dangerously

Thu, Jun 17, 2010

A year or more after the financial crisis, major VA annuity issuers are trying to do more with less—less risk, that is. Here are nine of the latest efforts.

Loaded VAs Haven’t Lost Their Lustre

Thu, Jun 17, 2010

Prudential Financial and Jackson National Life rack up sales with variable annuity contracts that ignore the adage, ‘Simplify, simplify, simplify.’

How Retirees Can Spend More Early (And Safely)

How Retirees Can Spend More Early (And Safely)

Wed, Jun 09, 2010

Bill Klinger's decumulation method involves techniques for moving payout rates up or down in response to market fluctuations. The New Jersey professor has also created the Retirement Quant planning tool.

Short Life Expectancy for U.K.’s Annuity ‘Mandate’

Short Life Expectancy for U.K.’s Annuity ‘Mandate’

Wed, Jun 02, 2010

Britain’s new ‘Lib-Con’ coalition aims to stop forcing retirees to annuitize their savings. It could be a step toward U.S./U.K. policy convergence.

A Jolly View of Financial Folly

A Jolly View of Financial Folly

Wed, Jun 02, 2010

"Retirementology," a new book by Jackson National Life executive Greg Salsbury, Ph.D., approaches the serious topic of retirement planning in a mordantly funny way.

The View from the Income Summit

The View from the Income Summit

Wed, May 26, 2010

At the Lifetime Income Summit in Washington last week, federal officials and financial industry executives amiably swapped views. But competitive tensions lay not far beneath the surface. Rep. Earl Pomeroy, D-ND (at left), was a featured speaker.

It Ain’t Always Rocket Science

It Ain’t Always Rocket Science

Wed, May 26, 2010

“Thank God I'm not the average retiree trying to decide who or what to believe regarding what to do with my retirement savings.”

Low Rates Keep U.S. Solvent. But for How Long?

Low Rates Keep U.S. Solvent. But for How Long?

Wed, May 19, 2010

Even Alan Greenspan is said to fret about the potential for a collapse in Treasury prices, reports this week's guest writer.

Part III: Industry Answers

Wed, May 12, 2010

In the final week or two of its RFI on in-plan annuities, the Labor Department began receiving comments from the industry that has a big stake in the way 401(k) assets are distributed.

Part II: Tracing the Distortion

Wed, May 12, 2010

In print, on radio and on TV, Rush Limbaugh and Newt Gingrich helped fuel the rumor that 401(k) plans were under attack.

Using Psychology to Sell Annuities

Using Psychology to Sell Annuities

Wed, May 12, 2010

Some behavioral finance experts believe that principles of psychology could be used to boost annuity sales.

The Hidden Risk in Target Date Funds

The Hidden Risk in Target Date Funds

Wed, May 05, 2010

Glide paths of TDFs differ markedly as the investor comes within ten years of retirement, and this divergence can lead to unpleasant surprises.

From GAO, a Primer on Retirement Income

From GAO, a Primer on Retirement Income

Wed, May 05, 2010

Last week, the Government Accountability Office sent a snapshot of America’s retirement income status to Sen. Herb Kohl, who will hold hearings on the topic in June.

The Future of DC Plans, Via PIMCO

The Future of DC Plans, Via PIMCO

Wed, Apr 28, 2010

A PIMCO executive’s new book is an ode to custom target date funds—and offers a glimpse of the Allianz unit’s retirement business strategy going forward.

Great-West Enters the In-Plan Income Space

Great-West Enters the In-Plan Income Space

Wed, Apr 28, 2010

"SecureFoundation" wraps a lifetime income rider around a set of proprietary target date funds for an all-in annual fee of 160 basis points.

Off-Track Bettors

Off-Track Bettors

Wed, Apr 21, 2010

"It should be noncontroversial that we can’t afford any more innovation on Wall Street," says the author of several books on the financial system.

How Big Is the Gap in Public Pensions?

Wed, Apr 21, 2010

Depending on the rate one uses to discount future obligations, state and local government pension plans face a funding shortfall in the wide range from $1 trillion to $3 trillion.

1Q 2010 Equity Performance: An Unconventional Evaluation

1Q 2010 Equity Performance: An Unconventional Evaluation

Wed, Apr 14, 2010

Surz, the president of San Clemente, CA-based Target Date Solutions, uses proprietary tools to dissect the first quarter's equity returns.

One Man’s Response to Uncle Sam’s RFI

One Man’s Response to Uncle Sam’s RFI

Wed, Apr 14, 2010

Joe Bellersen, president of Qualified Annuity Services, Inc., explains how employer plans lost their guaranteed income mojo over the past 30 years, and offers advice on how they might get it back.

Two Trends in One: CTFs and TDFs

Two Trends in One: CTFs and TDFs

Wed, Apr 07, 2010

Collective trust funds and target date funds are ‘made for each other,’ one analyst said. But will CTF-TDF hybrids create the same false sense of security among 401(k) participants that TDF mutual funds have?

My Life as a ‘Dangerous Woman’

My Life as a ‘Dangerous Woman’

Wed, Apr 07, 2010

The New School economist and 401(k) critic reveals that her notoriety is, in part, the result of a misunderstanding that went viral--with help from Rush Limbaugh.

ING Offers a Simpler, Cheaper Variable Annuity

ING Offers a Simpler, Cheaper Variable Annuity

Wed, Mar 31, 2010

The contract costs 2.25% a year, including 100 bps for the income rider, 75 bps for the M&E risk fee, and 50 bps for fund management, says Bill Lowe, president of ING Financial Solutions.

Insult to Injury: Disability’s Impact on a Retirement Plan

Insult to Injury: Disability’s Impact on a Retirement Plan

Wed, Mar 31, 2010

Even good retirement plans can backfire if you do not carefully consider the effect of disability and lost earning power on retirement savings.

Floor It!

Floor It!

Thu, Mar 25, 2010

In the Arizona desert, Mike Zwecher had a vision that led to his new book on building outcome-oriented retirement portfolios.

Milliman Offers Hedging Strategies to Distributors

Milliman Offers Hedging Strategies to Distributors

Wed, Mar 17, 2010

With three trading platforms around the globe, the Chicago-based actuarial consultant has come a long way from merely advising insurers.

If You’re Human, You Have Capital

If You’re Human, You Have Capital

Wed, Mar 10, 2010

Ibbotson president Peng Chen asks, “Are you a stock or a bond?”

The Joy of Illiquidity

The Joy of Illiquidity

Wed, Mar 10, 2010

The legendary Roger Ibbotson told money managers that there’s hidden gold in low-turnover stocks.

America Speaks Out—and Against—401(k) Annuities

America Speaks Out—and Against—401(k) Annuities

Wed, Mar 03, 2010

As of March 2, the responses to the Obama administration's request for input on lifetime options in 401(k) plans tended to be angry but well-reasoned.

So Few Words, So Many Implications

Tue, Mar 02, 2010

The Department of Labor proposes a subtle change in 401(k) advice regulations that may have huge repercussions for fund companies.

A Regulatory Nudge Is Needed

A Regulatory Nudge Is Needed

Wed, Feb 24, 2010

Since current Wall Street risk management methods are in the interest of those who work on Wall Street, they will not be changed except by regulatory means.

‘Saving More’ Trumps ‘Working Longer’

Wed, Feb 24, 2010

"I'll-work-till-I-drop" is often the first, but rarely the most sensible, response to a setback in retirement savings.

The Future of Fixed Annuities: A 2020 Vision

The Future of Fixed Annuities: A 2020 Vision

Thu, Feb 18, 2010

Jack Marrion predicts that by 2020 the securities industry will exercise control over the annuity market in the U.S.