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.)

Why Indexed Annuity Sales Are So Strong

Many factors are driving the increase in indexed annuity sales: More manufacturers, better products, more distributors, competitive commissions, aging boomers, and relaxed regulation. But does the bubble contain the seeds of its own deflation?

Lessons from a Living (DC) Experiment

Israel has found that even a mandatory defined contribution system can’t resolve all of the behavioral, economic, or administrative issues that prevent low-income and minority workers from saving for retirement. (Photo: Mahane Yehuda market in Jerusalem.)

What Advisors Want from Annuity Issuers

This week, RIJ received a press copy of “What Advisors Want from Annuity and Insurer Providers-2019,” a study by Practical Perspectives, a Boxford, MA-based financial services market research firm.
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).