LPL Taps Five Insurers for New VA Platform

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.)

Research Roundup

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.'

An Annuity’s ‘Moneyness’? There’s an App for That

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.

A Chip Off the Old Rock?

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.

Will New Retirees Rush to Spend Their Savings?

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.

Growth Spurt for VAs in Q4 and 2010: LIMRA

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.

Putnam adapts ‘Absolute Return 500 Fund’ for VAs

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.

‘New generation’ VAs proposed for Australians

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.

The Bucket

Late-breaking items from Principal Funds and MassMutual.