Value Investing for Retirement

“Purgatory is what I’m calling our set of forecasts,” said Ben Inker, GMO’s co-head of asset allocation, at the Morningstar Institutional Conference in Phoenix last week. “We won’t make much for seven years. But then we’ll see a steady rise to heaven.”

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

Computers as Enablers—and Disablers

"When computers and other machines take challenging tasks away from us, we turn into observers rather than actors," writes the author of the acclaimed new book, "The Glass Cage: Automation and Us."

Daniel Kahneman on Intuition, Etc.

In this continuation of our video of Daniel Kahneman at the Investment Management Consultants Association conference in New York last month, the Nobel Prize winner explains why expertise is possible only in regular environments.
News

Schwab goes robo

What yesterday was called “robo-advice,” and which today some are calling the “digital advisory channel,” seems to have passed a tipping point.