Long Guns as Leading Indicators
In past election periods, when I’ve canvassed door-to-door, some people have told me they won’t bother to vote because politicians are all alike. But they aren’t.
Anecdotal Evidence
Two Cheers for DOL’s Lifetime Income Disclosure
The Department of Labor's 'interim final rule' on disclosure of estimated lifetime income from 401(k) balances is welcome, but it lacks a critical feature. Public comments might improve it.
Is a P.E.P. Rally About to Start?
Willis Towers Watson and Aon both suggested in letters to the Labor Department that they may create defined contribution plans (Pooled Employer Plans, or PEPs) that many employers and...
‘Capital Arbitrage’ Helped PE-Led Insurers: Study
From 2009 to 2014, when private-equity firms bought life insurers, they exploited a capital-saving regulatory ruling to lucrative advantage.
How MMT Became Clear To Me
In colonial Virginia, the law required the burgesses to set the incoming tax receipts on fire. That taught me a key lesson about how our money works today. ...
Your Safest Retirement Asset
Already, I hear legislators refer to an approaching Social Security "train wreck." There is no approaching train wreck. When people want to fool you, they show you half of...
Is Employer-Sponsorship of Plans Suboptimal?
'In the wake of the pandemic, retirement and health insurance coverage are likely to be delinked from employer-provided plans in many countries,' writes Olivia Mitchell, executive director of the...
June is Index Month at RIJ
In June, Retirement Income Journal dedicates most of its coverage to the world of indexed annuities. This year we’re concentrating on the indexed variable annuity, for two reasons. Its...
A Primer for Annuity Newbies
Here, by popular demand, I offer a 10-minute tour of annuity products, using the same classification system that I used when writing Annuities for Dummies.
A Marvel of Financial Engineering
Like a tough cut of beef that becomes fit for a king if you cook it for a long time at a low temperature, this new fixed indexed annuity...
Please Don’t Raid Your Retirement Account
It would be smart, not paternalistic, to ease today’s financial pain without contributing to an even bigger retirement funding crisis down the road.
The Shape-Shifting ‘Equity Risk Premium’
Investors buy stocks because they believe they will outperform risk-free bonds by five or six percentage points per year over the long-term. But the risk-free rate, equity returns, and...
The ‘Fed Put’ Hurts Annuities—and Retirees
Low rates encourage excessive risk-taking. But the Fed keeps accommodating market sell-offs, which sets up a new round of boom and bust. Retirees (and the annuity issuers who serve...
Another Tough Decade for Annuities?
“With zero rates, I get a ‘shrinking iceberg’ feeling,” said Tim Paris, president of Ruark Consulting. He tracks annuity contract owner behavior and sees danger for life insurers at...
Observation Posts
Expert opinions on the crisis from Rob Arnott, David Babbel, A.M. Best, Zvi Bodie, Bill Borton, Francois Gadenne, Stan Haithcock, Per Linnemann, Sandy Mackenzie, Sheryl Moore, Steve Slifer, Eugene...
A Reminder that Market Risk Is Real
This equity slump can serve as a teaching moment for near-retirees who underestimated their need to develop a solid retirement income plan.
Yes, I Finally Bought an Annuity
Deciding to buy the contract wasn't easy. Maybe it wasn't even rational. But we feel relieved. We don't sweat these short-term market slides.
Why Bernie is So Demanding
Sen. Sanders is the atavistic avatar of demand-side economics, which dominated public policy from 1932 to 1971. Supply-side economics has held sway since the Reagan years. The 2020 election...
Roth 401(k)s: Appealing but Impractical
Tax-deferred retirement accounts help the financial industry but cost taxpayers an added $20.7 billion a year, according to two economists. Would an all-Roth world be more socially beneficial?
Sizing Up Lincoln Financial
Over the past 40 years, events and trends have helped determine Lincoln Financial Group's size today, which is smaller than its rivals in the individual annuity market. Former Lincoln...
