Even when interest rates are low, adding a lifetime income annuity to a fund portfolio 1) reduces the risk of portfolio ruin, 2) increases current income, and, 3) if the portfolio is shifted toward equities, can enhance the client's legacy.
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.'
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.
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.
The DOL wants the investing experience of IRA rollover owners to look and feel like the experience that IRA rollover owners knew when they were participants—an online, low-cost, education-oriented, no-hard-sell, group experience.
'The solution... is to fix the problem of deficient demand not by attempting to further loosen monetary conditions, but by boosting public spending,' says our guest columnist, an economist and author of many books on the global economy.
We are 'making changes to our platform and capabilities that we believe will help advisors grow their practices and support more investors in need of financial advice," said LPL's president in a release.
“There will be unexpected changes to the retirement and wealth management industries, and, to a degree, this cultural evolution is what the proposed rule is hoping to effect,” a Cerulli release said.
Weighted by assets, average equity fund expense ratios fell for sixth consecutive year in 2015, by two basis points to 68 basis points, according to the Investment Company Institute.