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?
Annuity issuers want—and need—their products to be included as a matter of course in the model portfolios or asset allocation software tools that more advisors are expected to rely on in the future.
Because corporations have been returning more of their profits over to shareholders and less to workers, especially over the past 30 years, according to authoritative recent research. The implication is that investors' gains have come at the expense of workers, who own little stock.
Catching up with the 'application programming interface' technology train is essential for annuity issuers. APIs integrate annuities into advisor platforms, reduce NIGO applications, and give clients a fluid online experience.
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.