A DIA with Dividends

The distinctive aspect of Northwestern Mutual's Select Portfolio deferred income annuity is that the contract owner can earn income-enhancing, inflation-protecting dividends over the life of the contract. (Photo: Northwestern Mutual's flagship building in Milwaukee.)

The Sacrificial Payroll Tax

Idle talk about suspending the payroll tax is making 'blue' Senators blue. We get answers from Social Security expert Eugene Steuerle of the Urban Institute.

An Income-Generating ‘Collar’

Using a 'protective net-credit collar,' the Nationwide Risk-Managed Income ETF has distributed monthly income at an annual rate of 7.88% in 2020, while appreciating 10%. Is there a catch?

Life Insurers’ Bermuda Triangle, Part II

The humble fixed indexed annuity is at the center of the restructuring hurricane that has swept through the life insurance industry in recent years. We bring you the second article in a series on the topic.
Featured

Gradual versus Lump-Sum Annuitization: The Jury is Still Out

A study by a unit of Fidelity Investments showed that it is premature to recommend a gradual, fixed percentage-of-assets monthly annuity purchase as an option in retirement plans, because the strategy would lead to widely different outcomes based on luck and timing.

Solvency Isn’t Social Security’s Only Problem

We need to reform the program’s benefit structure, now misaligned with its original anti-poverty goals, as much as we need to reform its financing structure, writes the Urban Institute fellow.
News

86% of 67-year-olds are collecting Social Security: MetLife

"Half of this group may not have achieved their retirement savings goals and are not confident about paying for the next phase of their lives,” said Sandra Timmermann, Ed.D., director of the MetLife Mature Market Institute.

Employees still not asking about 401(k) fees: Mesirow

“The reality is that many participants need assistance through custom guidance or a more paternalistic, automated solution,” said Chris Reagan, Mesirow Financial senior managing director and practice leader.

The Bucket

Brief or late-breaking items from ING U.S., BNY Mellon and Lincoln Financial Group.

Quote of the Week

"They say there are two sides to everything. But there is only one side to the stock market; and it is not the bull side or the bear side, but the right side" -- Edwin Lefevre, "Reminiscences of a Stock Operator" (1923).