Sorry to Burst Your Bubble

A look at the way bond funds recover from rate hikes and a review of the effect of rate hikes in the 1970s and 1980s on bond funds shows that fears of a bond bubble may be overblown.

The Sacrificial Payroll Tax

Idle talk about suspending the payroll tax is making 'blue' Senators blue. We get answers from Social Security expert Eugene Steuerle of the Urban Institute.

An Income-Generating ‘Collar’

Using a 'protective net-credit collar,' the Nationwide Risk-Managed Income ETF has distributed monthly income at an annual rate of 7.88% in 2020, while appreciating 10%. Is there a catch?

Life Insurers’ Bermuda Triangle, Part II

The humble fixed indexed annuity is at the center of the restructuring hurricane that has swept through the life insurance industry in recent years. We bring you the second article in a series on the topic.
Featured

$300 billion parked with former employers

After leaving a job and a 401(k) plans, most Americans take five years or more to move their retirement savings into a rollover IRA, according to a new survey of former participants by Cogent Research.

Meir Statman recommends mandatory national DC plan

“It is time to switch from libertarian-paternalistic nudges to fully paternalistic shoves,” writes Meir Statman, a professor of finance at Santa Clara University, in the draft of a new paper called, “Retirement Income for Non-Savers.”
News

What’s good for General Motors…

More than one-third (39%) of 230 U.S. DB plan sponsors representing almost five million employees told Aon Hewitt they are “somewhat” or “very likely” to offer lump-sum payouts to terminated vested participants and/or retirees in 2013.

Russell puts its “adaptive investing” model in new TDF series

According to a Russell release this week, the Adaptive Retirement Accounts, like conventional TDFs, would be a qualified default investment alternative (QDIA) under federal regulations, but would be more customized than conventional TDFs to each participant.

Is NEST a threat to Britain’s private pension providers?

Launched last October, NEST (National Employment Savings Trust) is a government-supported defined contribution for Britain's under-savers. Changes to NEST that would make it more competitive with private plans are controversial.

US mutual fund assets near the $15 trillion mark

“Assuming modest economic expansion this year, it is plausible that annual stock and bond fund flows exceed $500 billion, more than 50% above the previous annual record,” said Avi Nachmany, SI’s director of research.