Social Security turns 75 on Saturday, and pressure to raise the claiming age for full benefits is rising. But that would hurt the least well-off most, said experts at the Retirement Research Consortium meeting in Washington last week.
When will annuities be loved? After all the creative destruction of the past 10 years, what’s next for the annuity industry? Which trends will persist? Which products will flourish? We discuss the trends that Retirement Income Journal expects to cover in 2021 and beyond.
Fixed deferred annuities may be the most promising candidates for inclusion in 401(k) plans. But in order to adapt these contracts to the defined contribution space, they must lose some of the 'illiquidity' that helps make annuities valuable. Some innovative solutions are now on the market.
Publicly-held life insurers are using reinsurance to improve their balance sheets. But at what cost? 'I believe that many of these blocks of business are only being funded in part with real assets,' a forensic accountant told RIJ.
When clients discover that products have been sold to them without the adequate use of process, some advisors will surely face a day of reckoning, says the president of The Strategic Distribution Institute, LLC.
PIMCO's $239 billion Total Return Fund, which Gross manages, has returned 13% in the past year, beating 71% of its peers, according to Bloomberg.
The problem is that the demographic group that is selling homes and investments—the postwar BabyBoom generation—will be larger than the group that will be buying the assets.
Assets in target date mutual funds grew 9.8 percent in the first quarter. Lifecycle mutual funds managed $281 billion at the end of the first quarter of 2010, up from $256 billion at year-end 2009.
“Five years ago we started translating long term care costs into square feet of real estate, to highlight the heavy burden of paying for care,” said Denise Gott, chairman of LTC Financial Partners LLC.
The nation’s largest mutual life insurer announced a record $870 million worth of income annuity sales in the first half of 2010, along with gains in life insurance, long-term care insurance, mutual fund sales.
Tax breaks, when seen as passive spending programs, are a form of government waste. So raising taxes might shrink the size of government. Or not.