The Bucket
Brief or late-breaking items from Bankers Life and Casualty Company, New York Life, The American College, Vanguard, Mass Mutual, Jackson National Life, Jefferson National and Cerulli Associates.
Quote of the Week
"In an economic system in which a sovereign government operates through its own monetary system, spending (or lending) must occur before taxing. In addition, taxes are not a funding...
A Second Look at the ‘Floor-Leverage Model’
Two weeks ago we reported on new research by Jason Scott and John Watson of Financial Engines about a retirement income strategy that combines 85% safe assets with a...
Send MetLife’s ‘regards to Broadway, remember it to Herald Square’
MetLife announced that it will open a global technology hub in Cary, N.C., and create thousands of jobs there to complement its retail headquarters in Charlotte.
American General launches ‘Power Index Plus’ FIA
The new fixed indexed annuity offers three interest-crediting strategies, a one-year fixed interest account and two that are pegged to the S&P500 (excluding dividends): an annual point-to-point index interest...
Low COLA: The pause that doesn’t refresh
Since 2000, Social Security benefits have lost 31% of their buying power, according to The Senior Citizen League's 2013 Survey of Senior Costs. During that period, benefits rose 38%...
Second issue of new scholarly journal on retirement published
There are nine new articles in the fall edition of The Journal of Retirement, edited by George A. (Sandy) Mackenzie.
Annuity cash flows perk up in 3Q 2013: DTCC
Net flows into annuity products nearly doubled in the third quarter, to $4.4 billion from $2.3 billion in the second quarter. Outflows fell to 20.6 billion from $21.1 billion,...
Quote of the Week
“Never let the perfume of the premium distract you from the stench of the risk”—a maxim expressed by a reinsurance company executive at the American Council of Life Insurers’...
How the Economic Machine Works
In this informative and entertaining video, hedge fund billionaire Ray Dalio explains the U.S. economy as he sees it, in terms that anyone can understand, if not agree with....
Retirement Savings in a Co-Ed Dorm?
The investment industry wants to benefit from the tax-deferral subsidy and charge whatever it likes on the subsidized money in rollover IRAs. That’s asking for a lot. More important,...
A Case of Low Book Yields
“Even if rates were to slowly rise, they would still be historically low. There would be less pressure on companies, but the overall portfolio rate of return could continue...
Quote of the Week
“The story of book yields on investable assets, as with invested assets, has been one of decline. Gross book yields for the life insurance industry decreased 18 bps in...
The Bucket
Brief or late-breaking items from Financial Engines, Prudential, Guardian Insurance and BNY Mellon.
As DB wanes in the UK, Brits continue to mull retirement reform
“We do not want to set down a law that says ‘there are three ways you can do pension, and here’s what they are,’” said Steve Webb, Britain's pensions...
Dept. of ‘Say It Ain’t So’
Forbes reporter Ted Siedle alleges that asset managers are using the financial crisis to gain greater control over the billions in troubled public pensions—in this case, Rhode Island’s.
Jackson National to block 1035 transfers to VAs with optional guarantees
“The company is approaching the upper range for calendar year 2013 for total premium from variable annuities (VAs) that offer optional guaranteed benefits,” said a Jackson National release.
The Four-Sided Chess Game
Today, insurers are invoking fiduciary duty to justify the offering of lifetime income products in 401(k) plans. If the fiduciary standard were applied to the management of money in...
The ‘Floor-Leverage’ Model
An easy income recipe from Financial Engines: Put 15% of your savings in a triple- leveraged stock ETF and the rest in something safe, like a TIPS ladder.
