With the new FlexChoice guaranteed lifetime withdrawal rider on its flagship variable annuities, MetLife is betting that it can provide Boomers with a competitive income vehicle that's light on capital consumption.
We summarize four recent papers: 'Portfolios for Long-Term Investors,' 'What is the Value of Annuities?,' 'Public Economics and Inequality: Uncovering Our Social Nature,' and 'Financial and Total Wealth Inequality with Low Interest Rates.'
How will variable annuity contract owners use their income benefits? That question is vital to annuity issuers and to fiduciary advisers with clients who own VAs. This Texas Dep't of Insurance actuary knows a product that can help them find out.
Bloomberg reported this week that Prudential is considering selling its retirement plan recordkeeping business. Prudential didn't confirm the report, but several industry insiders did. Low interest rates, high costs of IT makeovers, and sticky stable value fund guarantees are driving the move, RIJ was told.
In this ongoing new feature, RIJ will ask and answer questions that pertain to retirement advisors and their clients. Our first Q&A concerns Medicaid annuities, which middle-class Baby Boomer couples who face nursing home costs should know about.
My nightmare scenario is that when rates go up, equity prices will fall, and millions of Boomers will wish they'd sold their stocks at the peak and bought income annuities with the proceeds.