Advisors: Give this ‘Tilt’ a Whirl

Last month, we reported on John Walton's "tilt" method of fine-tuning systematic withdrawals in retirement. New research by the Texas hydrologist-turned-retirement income specialist combines tilting and income annuities.

Research Roundup

We summarize four recent papers: 'Portfolios for Long-Term Investors,' 'What is the Value of Annuities?,' 'Public Economics and Inequality: Uncovering Our Social Nature,' and 'Financial and Total Wealth Inequality with Low Interest Rates.'

An Annuity’s ‘Moneyness’? There’s an App for That

How will variable annuity contract owners use their income benefits? That question is vital to annuity issuers and to fiduciary advisers with clients who own VAs. This Texas Dep't of Insurance actuary knows a product that can help them find out.

A Chip Off the Old Rock?

Bloomberg reported this week that Prudential is considering selling its retirement plan recordkeeping business. Prudential didn't confirm the report, but several industry insiders did. Low interest rates, high costs of IT makeovers, and sticky stable value fund guarantees are driving the move, RIJ was told.

Inside the Flight from Active Management

Nine-tenths of new fund flows are going to passive strategies, helped by a desire for low costs, the DOL fiduciary rule, and robo-advice. There's still a ton of money in active management, but “we see massive change happening,” said Jeff Levi of Casey Quirk by Deloitte.

The Great Woodstock Festival in the Sky

Sure, there will be stresses to federal and state budgets as the Boomers—with their titanium hips, Van Morrison CDs and organic green tea supplements—push the envelope of human longevity. But that’s just demographics. It’s temporary.

Quote of the Week

“We see a very dramatic increase in the phenomenon of flat or falling incomes. The proportion of households that have been affected by this trend has virtually exploded, from less than 2% to as much as 65% to 70% of the population , in the past decade—from about 2005 to 2014.” — McKinsey senior partner Richard Dobbs and McKinsey Global Institute (MGI) partner Anu Madgavkar (from an August 2016 McKinsey & Co. podcast).