'This is an early Christmas present,' said Melissa Kahn, managing director of the Defined Contribution team at State Street Global Advisors (SSgA), in an interview yesterday.
Besides deferred income annuities, Alex Powers of Bergen County, NJ, holds a sprinkling of real estate investment trusts (REITs), along with long-duration bonds, junk bonds, closed-end funds, gold, and index funds.
With estimates that the 10-largest recordkeepers will represent more than 75% of recordkept 401(k) assets by year-end 2019, current market dynamics point to an 'oligarchy' of retirement plan providers, a Cerulli analyst said.
The new Model would impose a best interest standard on sales and recommendations by insurance producers of annuity products, which is a higher standard than the currently applicable suitability requirements although it does not rise to the level of a fiduciary duty.
Schwab Intelligent Portfolios has a $5,000 minimum and charges no advisory fee. Schwab Intelligent Portfolios Premium has a $25,000 minimum and charges an initial one-time $300 fee for planning and a $30 monthly subscription ($90 billed quarterly).
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