What To Tell Nervous (Older) Clients Now

During market turmoil, the messages from “retirement income” advisors to their clients should be substantially different in their content from the messages that investment advisors typically send to their clients.

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.

On New Lincoln VA, the Income Benefit Is Mandatory

Available in 2017, the new product is called Lincoln Core Income. Its three underlying investments are all BlackRock iShares. The income benefit comes as part of the product, not as an option. (A link to the prospectus is provided.)

VA Sales are Down, But AUM Is Up: Morningstar

'Eight of the top-ten issuers saw their sales decline in the third quarter compared to the first quarter, where all 10 had negative sales growth,' writes Morningstar's annuity product manager in his quarterly VA Sales and Asset Survey.

Asset managers face five headwinds: Casey Quirk

Except in the Chinese market, the rate of organic growth in global assets will likely fall below one percent in the near future, according to a new report from the unit of Deloitte Consulting.