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.
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?
Israel has found that even a mandatory defined contribution system can’t resolve all of the behavioral, economic, or administrative issues that prevent low-income and minority workers from saving for retirement. (Photo: Mahane Yehuda market in Jerusalem.)
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.
“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.”
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.
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.
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.
“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.
Vanguard topped all fund families in January with overall inflows of $17.6 billion, 87% of which flowed to the firm’s passive lineup.