The variable annuity with a lifetime income benefit--sometimes known as an exotic put option or an embedded derivative--was a product that has come back to bite many of the companies that sold it. Was this product ever the best solution for the Boomer retirement challenge?
Wells Fargo Asset Management's new target-date series of CITs comes with a built-in, optional retirement income strategy: systematic withdrawals plus an annuity starting at age 85.
In her new book, 'The Deficit Myth,' Stephanie Kelton explains Modern Monetary Theory--and how we can afford a lot more as a nation than we think we can.
The deal, part of a trend in private-equity acquisitions of life/annuity properties that began a decade ago, makes KKR about one-third larger. The trend tailwind: low rates.
"We have been buying inflation-linked bonds and selling government bond futures against them," writes the head of fixed income at Old Mutual Asset Managers.
"The industry’s large in-force book of variable annuity business will continue to be a drag on profitability over the near term," the ratings agency said in a recent bulletin.
The fact that 10-year Treasury rates are only about 2% indicates the market’s belief that the U.S. economy will grow slowly over the next decade, Vanguard pointed out.
Retirement Income Journal will not appear on December 28, 2011, in observance of the Christmas holidays. The next issue will appear on January 4, 2012. To all our subscribers and readers, thank you for making 2011 our best year yet!
Economic headwinds include “market volatility, Europe's banking and fiscal crises, a polarized US Congress and overzealous fiscal restraint in Washington.”
White (pictured at left) joined Allianz Life in 2009 as chief administrative officer responsible for compliance, information technology, operations, and suitability.
Brief or late-breaking items regarding AXA Equitable Life, MassMutual, Prudential Financial, Barclays Wealth, and Wealth & Pension Services Group.