Examining the Indices in Index-Linked Annuities

A mountain biker needs 18 or 21 gears to smooth a path over rocks and through arroyos. Index-linked annuities now collectively offer some 140 index choices. Hybrid indices can theoretically smooth an investor’s path through rocky markets--but they're complicated.

Ten Rules-of-Thumb for Choosing Indices in Annuities

By Kerry Pechter
Here are some heuristics, provided by experts at Milliman, Annexus and elsewhere, for selecting and blending the increasingly complex indices found inside today's top-selling index-linked annuities.

Cryptocurrencies available in ForUsAll retirement plans

By Editorial Staff
'By introducing the Alt 401(k), we are democratizing access to what drives wealth for the wealthy - alternative investment options, combined with our original core offering of low-cost index funds, and personalized help,' said Jeff Schulte, ForUsAll’s CEO, in a release.

Diversification and Insurance: Which Should Come First?

'Diversification before insurance tends to perform better than insurance before diversification in the long run... but there are exceptions to this finding,' according to four analysts at Rand Merchant Bank and EDHEC-Risk Institute. This article is excerpted from a larger article in the Spring 2021 issue of EDHEC Research Insights.

Honorable Mention

By Editorial Staff
Nationwide annuities join SIMON’s shelf ; 2021 starts better for life/annuity industry than 2020 did: AM Best; “Extended care” requires as much planning as “long-term care”: Thrivent; Modern Woodmen in reinsurance deal with RGA.

COVER STORIES YOU MAY HAVE MISSED

June 4, 2021

The Point of Indexing (in Annuities)

By Kerry Pechter
Every June, RIJ focuses on indexed annuities. Last year, we studied options in indexed annuities. This year we consider the indexes themselves, especially 'hybrid' and 'volatility-controlled' indexes. Bryan Anderson, Don Dady and David Lau...
May 27, 2021

The Irony of Inflation Forecasting (Research Roundup)

By Kerry Pechter
In this month's roundup, we learn that CEOs pay little attention to inflation. We also find out why retirees keep saving, why "centaurs" pick stocks so well, which financial biases keep people poor, and...
May 20, 2021

If the DOL Investigates You…

By Kerry Pechter
Here are five FAQs about Department of Labor investigations of retirement plan advisers, and answers from attorneys at the prominent ERISA law firm Faegre Drinker. (Photo: Labor Secretary Marty Walsh.)