Stocks are like a passing offense and bonds, arguably, are more like a running game. In a new article, Morningstar’s David Blanchett writes that most retirees would be better off raising their allocation to bonds during retirement than raising their allocation to stocks.
Americans own almost $900 billion worth of variable annuities with lifetime income guarantees. Uncertainty over the way policyholders and their advisers might use the contracts can keep life insurer actuaries up at night. They often turn to Ruark Consulting for guidance.
When will annuities be loved? After all the creative destruction of the past 10 years, what’s next for the annuity industry? Which trends will persist? Which products will flourish? We discuss the trends that Retirement Income Journal expects to cover in 2021 and beyond.
Fixed deferred annuities may be the most promising candidates for inclusion in 401(k) plans. But in order to adapt these contracts to the defined contribution space, they must lose some of the 'illiquidity' that helps make annuities valuable. Some innovative solutions are now on the market.
Effective tax reform will undoubtedly require some difficult compromises. In this opinion piece, retirement expert Gene Steuerle of the Urban Institute describes a potential trade-off that is bound to might make some cheer and others wince.
The argument over whether there should be a fiduciary standard or a suitability standard misses the point. This is about the cost of distribution, not about ethics.
Though several of these proposals have been rejected or ignored by Congress in the past and may be ignored again, President Obama included a number of items in his 2016 budget request that could, if enacted, dramatically impact the retirement industry.