Constant proportion portfolio insurance, or CPPI, has helped Prudential attract crowds to its Highest Daily VA. Now other insurers are wondering if they should employ CPPI.
Three retirement experts talk about boring products that you might wish you owned right now: I-Bonds, cash value life insurance and annuities.
Franklin Templeton SVP Drew Carrington says his firm's Defined Maturity Funds, which work like bond ladders, could provide retirement income for 401(k) participants, and could be paired with qualified longevity annuity contracts.
A mortality and longevity expert at Willis Towers Watson writes that 'the variability of the mortality impact by age makes the impact highly variable by type of insurer.'
For the second time since the financial crisis, Prudential has reduced the richness of the living benefit riders on its popular Highest Daily series of variable annuities.
The package would cost about $900 billion over the next two years, to be financed entirely by adding to the national debt, according to The New York Times.
Costs on a 100-participant plan with a $50,000 average account balance range from .57% to 1.76%, according to the 11th edition of the 401k Averages Book.
A person briefed on the transaction said it would be priced at $4.35 a share, a 2% percent discount. At that price, taxpayers could profit by $12 billion on the Treasury’s investment in Citigroup.
James Bullard argued that QE has no impact on the longer-run U.S. fiscal outlook and that this outlook remains very poor no matter what the Fed does.
Retirees will probably be allowed to spend their savings at the rate they wish as long as they have at least enough guaranteed income to keep themselves from needing public support in retirement.
Late-breaking items about Sun Life, Genworth, J.P. Morgan, MetLife, the SPARK Institute, Fred Reish and Bosnia-Herzogovina.
Over the weekend, retirees may have lost the first battle of the generational war.