The Decumulation Beat
In my opinion, allowing IRA rollover money to escape the protections and restrictions that govern 401(k) plans will eventually nullify the federal government’s rationale for tax deferral—a benefit that...
Homage to Andalusia
Sevilla’s residents radiated a comforting joie de vivre. That, along with the Andalusian sunshine, made my spouse and I think seriously about returning, if not retiring, to southern Spain.
IRI Presents its Lobbying Goals for 2018
The Insured Retirement Institute, which advocates for the interests of manufacturers and distributors of annuities on Capitol Hill, held a somewhat muted press conference this week.
Not All 401(k)s are Created Equal; Should They Be?
Teresa Ghilarducci's proposal for mandatory U.S. retirement plans is no more radical than changes proposed overseas.
The Fragility of VA Living Benefit Guarantees
Their reliance on VA with living benefits has made life insurers 'more like pension fund managers because they have risky assets and guaranteed liabilities,' write economists at NYU-Stern and...
Morningstar’s Take on Income Annuities
In a recent article, Morningstar's Canadian research director shows, mathematically, how one might use term life insurance and income annuities (in sequence) to cope with one of life's known...
Anecdotal Evidence: Voya, Northwestern Mutual and Fake DOL Comments
New Year's reflections on: Voya's departure from the annuity business, Northwestern Mutual's new live-for-today television ads, and the Wall Street Journal's exposure of counterfeit postings on the DOL fiduciary...
A Simple Idea for Increasing Annuity Sales
'Annuitization decisions can be improved by getting people to think about how annuities help people avoid running out of wealth in old age,' said the Wharton School's Olivia Mitchell,...
Tontines: A New Threat to Annuities?
Life insurers like to say that they have a monopoly on longevity risk mediation. Digital tontines could prove them wrong.
Where Defined Contribution Falls Short
The defined contribution system, despite its standardized designs, regulations and contribution limits, reproduces (and may amplify) the economic disparities in the workforce it covers (or fails to cover).
A Bitter Sandwich on Thanksgiving
An elderly widow recently suffered a bad fall. Her children, one of whom is still paying college tuition for one of the grandchildren, face the prospect of paying $12,000...
The Word of the Week Is: Thanks
A short note from RIJ... It focuses on gratitude but also includes a hint of changes we plan for 2018.
The Ambiguity of Tax Deferral
A failure to agree on whether or not there's 'government money' in tax-deferred savings accounts has complicated our debates over the DOL fiduciary rule, the need for a harmonized...
The Turmoil inside TIAA
Articles criticizing TIAA appeared in the NY Times recently. In response, two former TIAA executives, speaking anonymously, described the competitive, cultural and financial pressures facing the financial services firm....
Taxes Will Be Cut But Not Reformed
'The odds of tax reform coming out of this conference are zero percent,' said former Treasury official Mark Iwry at the academic forum of the Defined Contribution Institutional Investments...
Jackson National VAs Offer Vanguard Funds
Ten Vanguard funds (including seven actively managed funds) are now available as investment options in several Jackson National variable annuities, including the fee-based Perspective Advisory II, issued three weeks...
How About ‘Free-Based’ Index Annuities?
If advisors choose not to sell fee-based FIAs because the remuneration is unattractive, then the fiduciary rule will have backfired.
Tax-Free QLACs? It Makes Sense
There would be no better way to jump-start awareness of longevity risk than by making withdrawals from qualified longevity annuity contracts tax-free. By reducing dependence on public assistance, the...
Dealing with the Contradictions of Financial Advice
'This is not a problem of Truth and Proof,' wrote Francois Gadenne of RIIA in an email and the inconsistencies of advice. “It is a problem of measurement (of...
Vanguard’s New CEO: No Surprises
For at least two decades, it was assumed that Tim Buckley would be Vanguard's CEO someday. And why not? He helped Vanguard grow into the paradoxically transparent yet mysterious...