'My proposal was to link the growth of Social Security benefits of the upper third of earners to CPI growth while letting the benefits of the lower third of earners continue to rise with the wage index,' said the former president of Fidelity Investments in this wide-ranging interview.
Jim Otar has explained his "zone" approach to retirement income planning in hundreds of presentations to thousands of advisors since 1997. He spoke at the IMCA retirement conference in Scottsdale earlier this month.
'The long end of the curve will stay stable but the front end of the curve will go up, so that we’ll have eventually have 2.5% at the short end and a long end between 2.5% and 3%,' predicted a BNP Paribas managing director recently. (Pictured: Janet Yellen.)
“Almost every major variable annuity writer has absorbed large write-downs on ‘policyholder behavior assumption updates,’” said a Munich Re executive. “So how do we take out that risk?”
Our guest columnist wants interest rates to rise faster. 'A steeper normalization path would produce an outcry,' he writes. 'But that would be far preferable to another devastating crisis.'
Advisors who sell on commission, I-banks that underwrite securities and sell them through their own broker-dealers, and recordkeepers that capitalize on their access to participants should all beware the DOL's impending conflict-of-interest rule, says Cerulli Associates.
Three represent the public, three represent employers, and three represent employee organizations. The fields of insurance, corporate trust, actuarial counseling, investment counseling, and investment management and accounting have one representative each.
The complaint alleges that “Insperity breached its fiduciary duties by causing the plan participants to pay millions of dollars in excessive recordkeeping fees to Insperity’s proprietary subsidiary, Insperity Retirement Services," according to a law firm press release.
Mortgage debt held by seniors increased slightly, to $1.46 trillion from $1.45 trillion, between the second and third quarters of this year.
IRAs, since 2007 the largest component of US retirement savings, held $7.3 trillion in assets at the end of the third quarter of 2015, down 4.8% from the previous quarter, ICI reported. Almost half of IRA assets, or $3.4 trillion, was invested in mutual funds.