Fixed indexed annuities remain a niche product, representing only about 10% of annuity sales. But that the niche has grown into an almost $50 billion-a-year business. Sales of FIAs have grown especially fast at independent broker-dealers since 2013.
'While mimicking the high payouts of an actuarially fair variable life annuity, TSAs would cost significantly less than commercial life annuities,' write Forman and Fullmer.
'We have all these insurance agents selling billions of dollars of fixed indexed annuities. But they have few clues about how the crediting rates have performed,'' says Kent Jacquay. With his Indexalyzer software, he proposes a solution.
Achaean Financial and Ash Brokerage, a large Fort Wayne, Ind., BGA, are partnering on a potential retirement game-changer: Achaean's immediate indexed income annuity, couched in Ash's JourneyGuide planning software. The underwriter has yet to be named.
This strikes me as the issue at the heart of the controversy over the Department of Labor's conflict-of-interests proposal—the issue we duck and dodge, while pretending that it’s all about “advice.”
As it stands, the “fractured approach" of the Department of Labor conflict-of-interest proposal "will confuse retirement investors, financial institutions, and advisers,” wrote FINRA executive Marcia Asquith in a comment on the DOL/EBSA website.
The suit by Boston's public employees' pension accuses traders at the 22 prominent firms of conspiring via Internet chatrooms and text messages to widen the spreads, or profit margins, on trades of government debt.