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.
Boston College, DCIIA and Morningstar provide new research on Britain's 'NEST' experience with auto-enrollment, custom TDFs and why replacing bad 401k investment options is a good idea.
At the LIMRA-Society of Actuaries Retirement Industry Conference in Baltimore last week, Scott Stolz from Raymond James, Greg Jaeck from Edward Jones and Jarrod Fisher from Simplicity Financial Distributors delivered frank opinions about annuities and annuity issuers.
Many factors are driving the increase in indexed annuity sales: More manufacturers, better products, more distributors, competitive commissions, aging boomers, and relaxed regulation. But does the bubble contain the seeds of its own deflation?
"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.