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.)
'Many of the decisions presented here are beyond the skills of most pre-retirees and retirees,' writes the author, a research scholar at the Stanford Center on Longevity. 'They’re going to need help.'
Bond mavens, check this out. A new SEC report describes how most of the $54-trillion dollar U.S. credit market survived last spring's financial crisis. It covers securitized 'leveraged loans,' which provide high-octane fuel for fixed indexed annuity issuers.
'Insurers can't remain wedded to product sales, which are becoming commoditized in a future that trends toward financial advice,' says industry veteran Michelle Richter, who just launched Fiduciary Insurance Services, LLC.
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.
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.
BlackRock/iShares is by far the most frequently listed provider of useful value-add support, followed by American Funds, JP Morgan, MFS, Jackson, and Fidelity.
"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.
“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.
Brief or late-breaking items from ING U.S., BNY Mellon and Lincoln Financial Group.
"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).