The Weird Math of Charitable Gift Annuities

Here's how the wealthy buy lifetime income while giving zip to insurance companies, a pittance to the IRS and--unless they live a very long time--a sizable gift to charity.

Research Roundup

For weeks, interesting studies have been gushing from the National Bureau of Economic Research and elsewhere on the economic implications of COVID-19. We've selected and summarized seven of them for you.

With BluePrint Income, AARP Ups its Ante on Annuity Sales

AARP's 38 million members can now buy income annuities and fixed-rate annuities on a platform powered by fintech firm Blueprint Income. Buyers get a complimentary annual 'retirement income check-up' from a salaried, insurance-licensed adviser. 

We Could Use Some Inflation

The Treasury said this week that it will borrow (and spend) about $3 trillion this quarter, to cover its stimulus promises. Where does that money come from and where does it go? 'The capital is going from one pocket to another,' explains Vanguard's active Treasury fund manager, who expects the stimulus to be withdrawn in 2022.
News

The direct channel is growing: Cerulli

Cerulli predicts the direct market will grow to close to $5 trillion and will control close to 10% of retail managed accounts assets by 2014, equating to $380 billion.

Millionaire ranks grew by 200,000 in 2011

The total millionaire population in the U.S. has climbed to 8.6 million households, but remains below the pre-recession high in 2007 of 9.2 million.

A.M. Best places Hartford’s ratings under review

The Hartford will place its individual annuity business into run-off effective April 27, 2012, A.M. Best said, and is pursuing other options for certain product lines within its Wealth Management segment, including sales or other strategic alternatives.

Don’t Cut Pensions, Expand Them

This economist at the New School argues that, rather than curtailing public and private pensions, New York and other states could save millions of workers from impending poverty by creating public pensions for everyone.

In Case You Missed the RIIA Conference

This year’s spring conference, held again at Morningstar headquarters in downtown Chicago, may have been RIIA's most substantive, timely and productive to date.