Weighing the Value of a Variable Annuity

A VA lifetime withdrawal benefit—especially one with a 'ratchet'—can provide the upside potential and downside protection that many Boomers want in retirement, say researchers Petra Steinorth and Olivia Mitchell. But a life annuity offers a higher dose of "AEW."

With BluePrint Income, AARP Ups its Ante on Annuity Sales

AARP's 38 million members can now buy income annuities and fixed-rate annuities on a platform powered by fintech firm Blueprint Income. Buyers get a complimentary annual 'retirement income check-up' from a salaried, insurance-licensed adviser. 

We Could Use Some Inflation

The Treasury said this week that it will borrow (and spend) about $3 trillion this quarter, to cover its stimulus promises. Where does that money come from and where does it go? 'The capital is going from one pocket to another,' explains Vanguard's active Treasury fund manager, who expects the stimulus to be withdrawn in 2022.

Look Homeward, Seeker of Liquidity

During a market crisis, a reverse mortgage home equity line of credit (ReLOC) can be a lifeline of ready cash for homeowners ages 62 and older. Don Graves of HECM Advisors Group explains.
Featured

Who’s Afraid of the Fiscal Cliff?

Not Bill Gale of the Brookings Institution. He recommends that we let the Bush tax cuts expire and the automatic spending cuts occur—and then to build a more sensible fiscal compromise on top of their ruins.
News

GDP growth rate of 2.8% predicted for 4Q 2012: Prudential

The 1.5% GDP growth in Q2 was due to weaker consumer and government spending and a negative trade balance. Bright spots were solid business investment spending and housing as well as a rise in inventories, according to Prudential strategist John Praveen.

The Bucket

Brief and late-breaking items from Natixis Global Asset Management, Symetra, Fidelity, Allianz Life and Genworth.

“Quote” of the Week

"The test of a first-rate intelligence is the ability to hold two opposed ideas in the mind at the same time, and still retain the ability to function. One should, for example, be able to see that things are hopeless and yet be determined to make them otherwise"--F. Scott Fitzgerald, from "The Crack-Up."

On Moshe Milevsky’s “The 7 Most Important Equations”

Each chapter in Prof. Milevsky's latest book focuses on a different important mathematical equation, on the genius who created it (or who won credit for creating it), and the application of that equation to retirement income problems.