Float Through Retirement on a CDA

Contingent deferred annuities (CDAs) are income guarantees for managed accounts. Their biggest regulatory hurdle may have been cleared last February, when an NAIC committee agreed that CDAs are annuities and not financial guaranty insurance.

Why Indexed Annuity Sales Are So Strong

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?

Lessons from a Living (DC) Experiment

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.)

What Advisors Want from Annuity Issuers

This week, RIJ received a press copy of “What Advisors Want from Annuity and Insurer Providers-2019,” a study by Practical Perspectives, a Boxford, MA-based financial services market research firm.
Featured

Contingent Deferred Annuities: Still a Rare Bird

Only two life insurers—Transamerica Advisors Life and Great-West Life & Annuity—can be said to be actively marketing contingent deferred annuities, aka stand-alone living benefits. Phoenix is on the cusp.
News

Discount rates fall, pension liabilities rise

In June, the discount rate used to calculate pension liabilities fell to 4.32% from 4.56%, raising the PBO to $1.698 trillion at the end of the month. The overall asset value for these 100 pensions increased from $1.263 trillion to $1.283 trillion.

“Quote” of the Week

"Money, no longer tied to gold or any other firm anchor, can be created instantly, in infinite quantities, on the technocrats' say-so. And so long as factories have spare capacity and unemployment keeps wages in check, there is unlikely to be any significant penalty from inflation"--Sebastian Mallaby, "Europe's Optional Catastrophe," Foreign Affairs, July/August 2012.

The Bucket

Brief or late-breaking items from Jackson National, Guardian Life and BNY Mellon.

It’s Not the Heat, It’s the Frugality

Everyone seems to agree that business has been crazy-slow this summer, thanks to election year paralysis. A bonus feature: My theory on why our monetary system functions like a bathroom sink.