In this second installment of our series on retirement risks, we examine sequence-of-returns risk: what it is, what it can cost, and how best to deal with it.
'Many of the decisions presented here are beyond the skills of most pre-retirees and retirees,' writes the author, a research scholar at the Stanford Center on Longevity. 'They’re going to need help.'
Bond mavens, check this out. A new SEC report describes how most of the $54-trillion dollar U.S. credit market survived last spring's financial crisis. It covers securitized 'leveraged loans,' which provide high-octane fuel for fixed indexed annuity issuers.
'Insurers can't remain wedded to product sales, which are becoming commoditized in a future that trends toward financial advice,' says industry veteran Michelle Richter, who just launched Fiduciary Insurance Services, LLC.
"Like the 8th-century Byzantine church, the nexus of Washington and Wall Street has grown corrupt," says Hutchinson, who writes the Bear's Lair column at PrudentBear.com, where this article first appeared.
The "Ruin-Contingent Life Annuity" proposed by Moshe Milevsky's QWeMA Group would liberate the guaranteed lifetime withdrawal benefit from the confines of variable annuities and separately-managed accounts.
With passage by the House, the bill now has to make it through "the gauntlet that is the Senate."
The measure is patterned on the Social Security Administration's annual statements, which since 1989 have informed working Americans of estimated monthly benefits based on their current earnings.
Almost half of the planners surveyed also said they gained between four and ten new retirement income clients in the last year.
Democrats plan to divert about $70 billion from what is left in the bailout fund to construction projects, credit to small businesses and aid to state and local governments.
Andy Sieg's Retirement & Philanthropic Services division is responsible for over $450 billion in client assets.