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.
'Many of the decisions presented here are beyond the skills of most pre-retirees and retirees,' writes the author, a research scholar at the Stanford Center on Longevity. 'They’re going to need help.'
Bond mavens, check this out. A new SEC report describes how most of the $54-trillion dollar U.S. credit market survived last spring's financial crisis. It covers securitized 'leveraged loans,' which provide high-octane fuel for fixed indexed annuity issuers.
'Insurers can't remain wedded to product sales, which are becoming commoditized in a future that trends toward financial advice,' says industry veteran Michelle Richter, who just launched Fiduciary Insurance Services, LLC.
In the newest version of Prudential's Highest Daily lifetime income rider, the former M&E charge is split into an temporary premium-based fee to recover acquistion costs and a smaller, persistent M&E fee based on the account value.
Under the latest version of GMIB Max, contract owners who take withdrawals before the fifth contract anniversary are locked into a maximum 4.5% per year withdrawal rate. If they defer withdrawals for five years, they can take out up to 5% for
Under the latest version of GMIB Max, contract owners who take withdrawals before the fifth contract anniversary are locked into a maximum 4.5% per year withdrawal rate. If they defer withdrawals for five years, they can take out up to 5% for life.
CEO Brad Hewitt said the company hasn’t decided whether it would need to change its name if it changed its customer base. "We haven't figured that out yet," he said. “The reality is, the practical thing is, people call us ‘Thrivent,’ “ he said.
Ten of 12 recordkeepers surveyed and one in three plan sponsors predict an increasing focus on retirement income for the next three-to-five years, according to the MetLife Retirement Income Practices Study.
The investment options include TOPS Protected ETF Portfolios, which use a short equity index futures strategy designed by Milliman to reduce volatility.
Brief or late-breaking items from Wells Fargo, Securian Financial, The Phoenix Companies, Great-West Life & Annuity, Financial Engines, LPL Financial, the Concord Coalition, Morningstar, Jackson National and JP Morgan.
“Some people may feel like they’re pushing mud up hill,” said Karen Wimbish, director of Retail Retirement at Wells Fargo, in describing Americans who are trying to save in a low interest environment.
Balkanization, conflicted corporate governance, and failed public-private hybrids are three prevalent structural problems that defy solutions.