Jackson National Life's newest variable annuity contract, Elite Access, offers a variety of high-turnover alternative investment options inside a tax-deferred wrapper--and no living benefits.
At the LIMRA-Society of Actuaries Retirement Industry Conference in Baltimore last week, Scott Stolz from Raymond James, Greg Jaeck from Edward Jones and Jarrod Fisher from Simplicity Financial Distributors delivered frank opinions about annuities and annuity issuers.
Many factors are driving the increase in indexed annuity sales: More manufacturers, better products, more distributors, competitive commissions, aging boomers, and relaxed regulation. But does the bubble contain the seeds of its own deflation?
Israel has found that even a mandatory defined contribution system can’t resolve all of the behavioral, economic, or administrative issues that prevent low-income and minority workers from saving for retirement. (Photo: Mahane Yehuda market in Jerusalem.)
Over the next five years, 55% of advisors see their allocation to alternative investments increasing “moderately” and 11.1% see it increasing “substantially,” according to a Jefferson National survey.
The Dutch Social Affairs minister, a phalanx of pension-sponsoring industry associations, and European insurers are all protesting the stringent capital requirements proposed under Solvency II, the regulatory regime that would harmonize Europe's insurance standards.
In the medium-term, as private-sector deleveraging problems fade, there is likely to be a stronger and faster cyclical recovery than most intermediate bond markets appear to be pricing, the consulting firm said.
Deficit-financed tax cuts don’t pay for themselves and “are not a free lunch,” said Diane Lim Rogers, chief economist at the independent research group.
“Advisors play a crucial role in educating their clients about alternative investments,” said Nadia Papagiannis, Morningstar’s director of alternative fund research.
Brief or late-breaking items from Credit Suisse, The Standard, OneAmerica, LPL Financial, Advisor Software Inc., Oliver Wyman, and the Bank of Montreal.
“AIP is designed to provide the alternative investment industry with the same type of efficiency and scalability that exists in the mutual fund industry,” said Schwab executive vice president Bernie Clark.
Contrary to conventional wisdom, high net worth individuals can benefit from owning annuities. It just has to be the right kind of annuity.