A Day in the Life of ‘Day One’
To show that Prudential understands retirement and empathizes with retirees, the insurer created a series of warm, image-building ads in which real-life retirees show-and-tell their own stories.(Above, Linda Guthrie.)
The Black Box of 401(k) Expenses
The experts--Louis Harvey of Dalbar, Mike Alfred of Brightscope, David Witz of PlanTools, Phil Chiricotti of CFDD, Jonathan Leidy, CFP, and Tussey v. ABB attorney Jerry Schlichter--talk about what the 401(k) fee disclosure rules will mean.
Searching for an Oasis
This roundup of investment flow reports from Beacon Research, Strategic Insight, Morningstar and the Insured Retirement Institute suggests that investors are looking for shelter from an economic sandstorm in which visibility has declined to zero.
What’s Good for General Motors…
A month after Ford’s pension buyout offer, GM is offering some salaried retirees a choice of a lump sum buyout or lifetime income from Prudential. Both automakers took advantage of a change in discount rates to reduce obligations.
News
‘Obamacare’ Survives
In making a tie-breaking vote, Chief Justice John Roberts allowed the so-called "individual mandate" of the Affordable Care Act to stand, on the grounds that the penalty for not buying health insurance is a tax, and that Congress has the power to tax.
Pew public pension report disputed by public pensions
Hank Kim of NCPERS says that the recent Pew Public Pension Report paints an overly bleak portrait of the present and future financial condition of state pensions.
Non-profit annuity advocacy organization created by industry leaders
In its developmental stage, SAFE has been closely affiliated with NAFA, the National Association for Fixed Annuities. With the approval of SAFE as a 501(c)3 organization, it will operate independently, according to a release.
Low interest rates a ‘nightmare’ for pension funds: UK official
But Pension Minister Steve Webb said he intended not to act but to follow the example of Denmark and Sweden, which recently announced a voluntary floor that could be used by the country's pension providers.
Vanguard index wizard Gus Sauter to retire
Mortimer J. “Tim” Buckley, managing director, will assume the role of chief investment officer upon Mr. Sauter’s retirement.
Sales of AXA’s ‘Structured Capital Strategies’ VA reach $1 billion
On the upside, investors in the product participate in positive index returns up to a cap. On the downside, AXA Equitable will absorb the first -10%, -20% or -30% of loss, depending on the selected index and duration.
Plan Sponsors Awaken to Leadership Role
The newest Retirement Planscape report from Cogent Research indicates that sponsors of retirement plans of all sizes are becoming more assertive in making sure their participants will be financially secure later in life.
Poisoned Pensions
Poor investments and rich benefits play a role in state pension underfunding, but they are insignificant compared to the lack of full contributions, writes Chris Tobe. SEC and the ratings agencies have neglected deliberate underfunding of the plans, he says.
My New Baseball Cap
Jeremy Grantham and William Bernstein spoke at the Morningstar Investment Conference, and Morningstar handed out a recent study in which its analysts compared five different retirement withdrawal strategies--and chose the most efficient.
