It’s morning in America for manufacturers of deferred income annuities, or DIAs. Are they a passing fancy, or do they offer the perfect balance between risk and reward?
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 exit from the Fed’s QE and zero-interest-rate policies will be treacherous, writes this NYU Stern School of Business economist. Exiting too fast will crash the real economy, while exiting too slowly will first create a huge bubble and then crash the financial system.
Here are thumbnail descriptions of deferred income annuities from American General, Guardian Life, MassMutual, MetLife, New York Life, Northwestern Mutual, The Principal, Prudential and Symetra.
“This is all about what you do with other people's money – you can't get more political than that. It’s very difficult to lay down a hard and fast rule that will work for decades to come,” said Roger McCormick.
A report by the Organization of Economic Cooperation and Development says compulsory participation in national defined contribution plans is more effective and less expensive than auto-enrollment programs.
Transamerica launches a new service for small-plan sponsors, The Online 401(k) jumps into the auto-IRA business, and Fidelity announces that small-plan balances have rebounded 64% since the nadir of the financial crisis.
The trend toward embedding risk-management mechanisms inside variable annuity portfolios continues.
Brief or late-breaking items from MassMutual, Nationwide and ASPire.