Are Most Glide Paths Upside Down?

Investing in equities early in the lifecycle, when balances are low, offers little advantage and may even discourage young investors who suffer losses. So says one of the studies in this roundup of recent retirement research.

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.

Only 10% of Americans ‘very satisfied’ with financial situation

If you add up the people who have a retirement plan but don't participate with the unemployed and the people who have no workplace plan, 68% of adults aged 25-64 did not participate in a plan. So says a new study from the Center for Retirement Research.

RetirePreneur: Matt Carey

Matt Carey is the CEO and co-founder of Abaris Financial (, a direct-to-consumer online platform for income annuities.

Quote of the Week

“We’re not doing anything really fancy or sexy, it’s really basic stuff. The fund business is so different than banking. One, it is an agency business so you as an investor in a fund take all the risk. We take no risk. Banks have a proprietary business model, they’re taking client risk, which is completely different” – Vanguard CEO Bill McNabb, in explaining to the Financial Times this week why asset managers like Vanguard, Fidelity, BlackRock and PIMCO are not systemically important financial institutions, despite their huge bond AUM.