Advisors who use LPL Financial’s new Fee-Based Variable Annuity platform can manage VA subaccounts just like mutual funds. (Photo at LPL’s San Diego office.)
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.
A study by MIT's James Poterba (left) and others shows that current retirees tend to hoard 401(k) and traditional IRA assets, along with home equity, against possible future emergencies.
Under certain conditions, the rider can offer a step-up and a roll-up during the first 10 years, providing "growth on growth" potential.
A similar strategy backfired in 2003, when the state tried to fund its pension by borrowing $10 billion at 5.1%. It earned 3% on the proceeds, instead of the promised 8%.
The stock market rally drove a double-digit rise in VA sales in the fourth quarter of 2010. Index annuities had another record year, but other fixed annuities suffered.
Eager to use their time more effectively, advisors want more functionality from their technology platforms.
Putnam Investments launched four Absolute Return Funds in January 2009 that aimed to match the returns of short-term securities, bonds, balanced funds and stocks, respectively, but with less risk.
The Australian government should try to deal with longevity risk by developing a “new generation variable annuities market,” according to the Institute of Actuaries of Australia.
Late-breaking items from Principal Funds and MassMutual.