In retirement, "risk" can turn from an object of pursuit to an object of avoidance. In the second installment of a two-part article, our guest columnist continues his discussion of financial and other risks that retirees and advisors should anticipate.
Several variable annuity issuers offer optional income riders that allow a 7% or 8% withdrawal rate at age 70 unless or until the account value falls to zero, at which point the withdrawal rate drops to 4% or 3%. It seems like a risk-shift back to the client.
While interest rate hikes tend to drive surrenders from fixed indexed annuity contracts, surrenders decline when a contract's lifetime income benefits are 'in the money,' studies by Ruark Consulting show. (Pictured: Ruark CEO Tim Paris.
Prudential promotes “sidecar” savings plan for emergencies; Student loan payments are eligible for partial match in Travelers 401(k) plan; Athene attributes losses to adverse interest rate, equity market conditions.
'The returns on external sovereign bonds (largely bonds issued by emerging market countries and now-advanced economies) have been sufficiently high to compensate investors for risk,' write these co-researchers. (Pictured: Reinhart)
A one percentage point drop in the federal funds rate is associated, over the following three years, with a five percent increase in the inflows to stock mutual funds with high income yields, according to a new paper from the National Bureau of Economic Research.
Ireland's plan also calls for auto-escalation. By 2028, the total contribution for each member would be 12% of salary a year. The government will add 2%, for a total of 14% of salary, to a cap of €75,000 ($84,726).