Under Putnam’s Hood, A Fidelity Engine Roars

In the past year, Putnam Investments owner Great-West Lifeco has recruited (l-r) Fidelity veterans Robert L. Reynolds, Jeffrey R. Carney and Edmund F. Murphy III, among others, perhaps to capitalize on Obama's plan for universal retirement savings coverage.

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.
Featured

Obama Calls for ‘Office of National Insurance’

While the administration's June 18 report, "Financial Regulatory Reform," did not offer the “optional federal charter” that large insurance companies support as an alternative to state-by-state regulation, it did not rule one out.

Target Date Funds: A QDIA That’s DOA?

Last week, federal officials tried to locate the blame for 2008 TDF losses: Was it marketing hype by TDF makers, a flawed concept, Americans' weak financial literacy, regulatory lapses, or merely the caprice of the markets?
News

For Many, Bear Market May Delay Retirement

The decline in the value of their 401(k) accounts was cited by 76% of workers aged 50 to 64 as the most important reason they plan to postpone retirement.

CPAs Tell All About Their HNW Clients

A survey of top CPAs reveals that the wealthy are watching their pennies because of the recession. The survey also reveals the financial advice that accountants are giving their HNW clients.