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No Tower of Babel, or Babble, from Babbel
Wed, May 16, 2012
If you're engaged in selling or marketing income annuities, you must read this 2007 white paper by Wharton professor David Babbel. It's an enduring classic.
The Decumulation Beat
Dept. of Ruffled Feathers
Tue, May 08, 2012
I suggested to Kelli Hueler that she has "ruffled some feathers" in the annuity business. The creator of Income Solutions was both surprised and not surprised to hear that.
Springtime is for SPIAs, Etc.
Tue, May 01, 2012
Here at RIJ, May is the month when we focus on income annuities. Expect to hear a lot about SPIAs, SPIVAs, DIAs, and/or ALDAs over the next several weeks.
Macchia, the Man and the Machine
Tue, Apr 24, 2012
David Macchia, the president of Wealth2k and developer of Income for Life Model, keeps going and going and going... and thinking a lot about the Boomer retirement income opportunity.
The Financial World Is Round
Tue, Apr 17, 2012
I don’t necessarily agree with all the policy recommendations of Modern Monetary Theory proponents. But, for me, MMT helps explain much of what was previously inexplicable about our financial system.
A Reader Comments on the ARIA CDA
Tue, Apr 03, 2012
CFP Mark Cortazzo of MACRO Consulting Group says that the fee-assessment mechanism of the ARIA contingent deferred annuity taketh away even as the product's living benefit giveth.
Mad Men
Tue, Mar 27, 2012
The leitmotif of the Retirement/Pension track of the Society of Actuaries Investment Symposium in New York on Monday was that risky assets and pensions mix like, say, metallic sodium and water. Explosively, that is.
In Case You Missed the RIIA Conference
Wed, Mar 21, 2012
This year’s spring conference, held again at Morningstar headquarters in downtown Chicago, may have been RIIA's most substantive, timely and productive to date.
Politicized Economist
Tue, Mar 13, 2012
Laurence Kotlikoff of Boston University, a member of the RIJ community, is running for president of the United States on a "purple" platform. But he's hardly middle-of-the-road.
Six Annuities for the Wealthy
Wed, Mar 07, 2012
Contrary to conventional wisdom, high net worth individuals can benefit from owning annuities. It just has to be the right kind of annuity.
‘Field Research’ in Behavioral Finance
Mon, Feb 20, 2012
Real scientists scoff at the value of "anecdotal evidence." But you can learn a lot about the psychology of money at a garage sale, or when you're buying clothes.
It's Conference Season
Wed, Feb 15, 2012
The approach of spring brings Grapefruit League baseball, income tax forms and a new parade of retirement industry-related conferences. We've updated our Events calendar just in time for the new season.
The World of Retirement Research
Thu, Feb 02, 2012
We’re making retirement income research RIJ’s main topic for February.
The Abandonment of an Ideal
Thu, Jan 19, 2012
The gulf between the reality of wealth distribution in America and our ideal wealth distribution is what the “one-percent” controversy is really about.
The Missing Sockdolager
Tue, Jan 10, 2012
An article appeared yesterday under the headline, "Variable-annuity guarantees disappoint over time." I think the jury is still out on that.
Searching for the Right Decumulation Tool
Tue, Jan 03, 2012
This month we'll be dedicating a fair amount of space to retirement income planning software tools.
What Income Planning Software Do You Use?
Wed, Nov 30, 2011
Calling all investment advisers and financial planners: RIJ wants to hear from you about the tools you use to help your clients create retirement income.
Signature of the Times
Tue, Nov 22, 2011
After the report of a $900 million charge in the third quarter, Manulife’s decision to limit distribution of John Hancock annuities can’t have shocked many people.
Our Half-Full, Half-Empty Retirement Glass
Tue, Nov 15, 2011
The private DC system covers only about half of American workers at any given time. Proposals to open state pension plans to uncovered workers have been made, and the threat of competition may actually be healthy for the 401(k) system.
$10 million a week in sales for New York Life's deferred income annuity
Tue, Nov 08, 2011
Low CD rates and equity volatility may be helping sales of the Guaranteed Future Income Annuity, which has collected $100 million in premia since July to become NY Life's hottest launch ever.
The Plot to Kill Social Security
Wed, Nov 02, 2011
Is it paranoid to believe that the assault on Social Security is orchestrated? Or is Halloween getting to me?
“Income” Funds with High Price Tags
Wed, Oct 26, 2011
Unless I’ve missed something, the three Putnam Retirement Income Lifestyle Funds, as “income funds,” seem long on promises and short on delivery—particularly in light of the costs.
The Scoop on Pre-Owned Annuities
Wed, Oct 12, 2011
When buying a secondary-market annuity that offers a 7% or 8% effective rate of return, make sure you deal with honest brokers.
Our Debt Won’t Bankrupt Our Grandkids
Wed, Oct 05, 2011
Deficit hawks say that federal debts and deficits put our progeny in a hole. Indeed, they've said it for decades. But some economists, starting as far back as 75 years ago, have said that's poppycock. The latter may be right.
401(k) Reforms: More Enviable Than Viable
Wed, Sep 28, 2011
Proponents of 401(k) reform met defenders of the status quo in a Senate Finance Committee hearing on Sept. 15. The reforms have some justification, but they could hurt the very people who decide whether to sponsor a plan or not.
No-Shows at the Trade Show
Tue, Sep 20, 2011
At the Financial Planning Association Experience 2011 meeting in San Diego last week, a couple of thousand financial advisors were on hand. So why the dearth of exhibits by annuity issuers?
The Secret to MetLife's VA Success
Wed, Aug 31, 2011
MetLife was able to knock off Prudential as the top seller of variable annuities in the second quarter because it de-risked its income benefit in a way that actually improved its marketing story.
Does Decumulation Spell Doom?
Tue, Aug 23, 2011
Economists at the San Francisco Fed suggest that P/E ratios are bound to suffer as the Boomer cohort gets older and liquidates its assets.
They Know Not What They Do
Tue, Aug 09, 2011
The equity sell-off and rush to Treasuries didn't happen because Congress failed to cut the deficit or the debt aggressively enough. In my humble opinion, it happened for the opposite reason.
A Modest Proposal
Tue, Aug 02, 2011
Americans used to help their government by buying government bonds. I think we can solve our current debt problem by tearing up our government bonds!
The Journal Plays Gotcha! with EBRI
Tue, Jul 12, 2011
In a July 7 article, the Wall Street Journal reported that auto-enrollment in 401(k) plans has backfired, sticking some people at a lower contribution rate than they might have elected. In its desire for a man-bites-dog story, the Journal overreached.
It’s July, So We Must Be in VA-VA-Land
Tue, Jul 05, 2011
Welcome to Retirement Income Journal’s Variable Annuity Month. We’re devoting all four of our weekly issues in July to the promise and the problems of variable annuities.
Things Heard and Overheard
Wed, Jun 29, 2011
Here's a follow-up on our earlier report on the recent SPARK conference, with more news and comment about DoL enforcement strategy, the threat to the tax deferral for savings, and what might happen when participants see how much their plans cost.
Annuities, Sudden Darlings of the Media
Mon, Jun 20, 2011
Positive articles about annuities are certainly welcome—especially at a time when a relentless interest-rate drought is desiccating their value—but recent pieces in Barron's and the New York Times didn't advance the annuity dialogue very far.
Let's Not Panic Over the Deficit
Wed, Jun 08, 2011
“The current weak state of many economies argues against implementing budget cuts in the next couple of years,” says a new pamphlet from the Peterson Institute for International Economics.
Always Protect Your Story
Tue, May 24, 2011
Two weeks ago, when Prudential plc's CEO told analysts that he envisioned unspecified risk reductions in Jackson National's VA by end of year, he clearly didn’t realize that his statement could muddy Jackson's well-honed "story."
Speculation About Jackson National
Tue, May 17, 2011
If Jackson National de-risks its variable annuity offerings, it would merely be following the example of competitors like Prudential and MetLife. Jackson's parent also has to consider Solvency II.
A Month of SPIAs
Tue, May 03, 2011
Starting with today’s issue, we’ll devote four weeks of cover stories and features to single premium immediate annuities. Millions of mass=affluent Americans will need them.
America Isn't a Corporation
Mon, Apr 11, 2011
Congressman Paul Ryan's approach to the budget makes sense only if you think America should function like a corporation and that Medicare payments are income for beneficiaries. Nix to both ideas.
Did Income Inequality Cause the Crisis?
Tue, Mar 29, 2011
Those with surplus money naturally lend to those who need money. But, as two IMF experts show, disaster can occur when too much money is lent for consumption and the process goes on too long.
Gimme Shelter
Wed, Feb 02, 2011
The autobiography of Rolling Stones guitarist Keith Richards and the report of the Financial Crisis Inquiry Commission have a few things in common.
The 800-pound Irony of TDFs
Wed, Jan 19, 2011
The DoL wants TDF managers to disclose more information to plan participants. But the real problem may lie with plan fiduciaries, and current TDF designs.
RIJ’s Top Ten List for 2010
Wed, Dec 22, 2010
Letterman, look out. Retirement Income Journal offers its own list of the year's highlights in the retirement income industry (or in one person's small corner of it).
The Tax Deal Feels Wrong
Tue, Dec 07, 2010
Over the weekend, retirees may have lost the first battle of the generational war.
Decumulation Beat
Tue, Nov 23, 2010
Only advisors who are self-employed have the autonomy to use the fiduciary standard when working with clients.
End the Bush Tax Cuts
Wed, Nov 03, 2010
If we're serious about reducing the deficit and sparing our grandchildren a legacy of debt, it would be irresponsible to do anything else.
A Case of Election Psychosis
Wed, Oct 27, 2010
“Doc, I can’t sleep. I stay up all night, trying to figure out who I should vote for,” said the Undecided Voter as he reclined on the leather longue...
A New Designation Is Born: the RMA
Wed, Oct 13, 2010
The Retirement Income Industry Association (RIIA) announced the first recipients of its Retirement Management Analyst designation at its annual meeting last week.
The Big Red Stag's Mistake
Wed, Sep 08, 2010
In ordinary times, The Hartford's letter-gate problem might vanish quickly. But investors are nervous, a big election is coming up, and the reputation of the financial services industry is fragile. A cap-gun could set off a panic.
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.”
