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Burton Malkiel Talks About Efficient Markets
In this video sponsored by Vanguard, Burton Malkiel, Princeton professor and author of "A Random Walk Down Wall Street," talks with RIJ editor Kerry Pechter about what "efficient market" means to him. The 10th edition of "A Random Walk" has just been published.
Industry Views are special reports that are sponsored and independent from RIJ's editorial content.
November 9, 2011, The Decumulation Beat
$10 million a week in sales for New York Life's deferred income annuity
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.
Last July, when New York Life introduced its deferred income annuity—Guaranteed Future Income Annuity—the product seemed to make lots of sense. It allows individuals to buy personal pensions gradually, and at a discount, in advance of retirement.
But the product also appeared to face hurricane-force headwinds, from two angles. First, many Americans continue to resist illiquid and irrevocable financial products. Second, the Federal Reserve’s low interest policy aims to freeze the risk-free interest rate near zero until 2013.
So the big mutual insurer’s announcement this week that it had sold $100 million worth of the GFIA—20% of New York Life’s total income annuity sales—within three months of the product launch, was fairly remarkable.
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