Singing from the Fee-Only Song Book
Given their focus on planning rather than sales, fee-only advisors seem well-suited to the labor-intensive process of creating customized retirement income solutions for their clients.
Good Day at BlackRock
BlackRock will use the SPARK Institute's new IT standards to deliver the LifePath in-plan income solution--a deferred income annuity in a target-date fund of funds. “That’s a very important step in the evolution of these products in the marketplace,” said BlackRock's Chip Castille (above).
A New Brand of VA Conference
Under Cathy Weatherford’s command, the IRI annual conference has become smaller, more strategic, less tactical, and more Washington-oriented.
Plan Experts Like Annuities
In a workshop at this week's ASPPA annual meeting in Washington, D.C., few third-party administrators believed that the average couple will be able to afford the retirement they dream of. Many people, they said (including themselves), will need annuities.
Featured
Don’t Let Your Politics Shoot You in the Financial Foot
If you intend to be rational about investing, separate politics from portfolio, writes fee-only advisor and author (and political news junkie) Russell Wild.
Vox Populi on the ‘Volcker Rule’
More than 1,400 Americans, including Paul Volcker himself (at left) commented on the proposed rule, which would ban risky 'proprietary' trading by banks. A smaller but more influential group—including insurers and the probable next chair of the House Committee on Financial Services—decried the rule.
News
Uncertainty Hurts More Than QE2 Helps, Finance Pros Say
Weak consumer demand, uncertainty about regulatory changes, unemployment, anti-business sentiment in Washington, uncertainty about tax policy, commodity price volatility and FOREX volatility, in that order, were cited as reasons for weak private investment.
Draft of Deficit Reduction Proposals Released
The deficit committee's modest proposal to reconsider all of the $1.1 trillion worth of annual "tax expenditures"--including the tax deferral benefit that underlies the retirement industry--worries Brian Graff, CEO of ASPPA.
Many Plan Sponsors Puzzled by TDFs
Just 34% of plan sponsors responding to a Janus/Asset International poll believe target date funds are the best QDIA for their plan, down from 57% last year.
Dinosaur Cloning Will Precede Social Security Fix: Survey
. . . and 77% of Americans with children at home say their child is more likely to catch a foul ball in the seats at a baseball game than cash a Social Security check.
Global Fund Flows on Pace for $850B in 2010
In the U.S., Strategic Insight expects 2010 full-year flows to stock and bond funds to hit $400 billion, including ETFs and funds underlying VAs.
The Bucket
Late-breaking items about Financial Engines, Jackson National Life, Nationwide Retirement Plans, Allianz Life of North America, Pershing, Penn Mutual Life, American Equity Investment Life, Genworth Financial, ING, Wolters Kluwer, New York Life, Fidelity and Securian . . .
Quote of the Week
"Gold is at a record only if you fail to adjust for inflation. And you should almost always adjust for inflation" -- Economics columnist David Leonhardt of The New York Times, explaining that gold cost a record $2,387 (in 2010 dollars) 30 years ago.
