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.

Marshmallows and Social Security

Should US retirees delay claiming Social Security until age 70, even if they have to spend savings until then? The Center for Retirement Research at Boston College proposes that strategy as a default option in retirement plans.

How to Choose an Annuity Issuer

Shopping for an annuity, like shopping for a car, involves questions about the manufacturer of the product. Do their products perform as expected? Will service quality be high? Are they likely to stay in business? We show you where to look for answers.

Time to Put Benjamins Back in the Sock Drawer?

At the LIMRA annual conference in Boston earlier this week, MIT economist James Poterba described how low interest rates make saving for retirement more of a challenge.
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.