Manish Malhotra’s FIAP platform, set to launch next year, will enable advisors to build retirement income streams out of laddered TIPS, immediate annuities, and withdrawals from balanced portfolios.
The "Zero Plan" proposed by the co-chairs of the National Commission on Fiscal Responsibility and Reform last week calls for the end of $1.1 trillion in tax breaks. The co-chairs would save Social Security through a combination of reduced benefits and higher taxes.
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.
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).
Only advisors who are self-employed have the autonomy to use the fiduciary standard when working with clients.
At the same time, a dozen large insurance companies saw their VA sales drop by double-digit percentages from the second to the third quarter of 2010, according to Morningstar data.
“The current interest rate environment poses a challenge for issuers of these annuities because it pressures profitability," said Beacon Research president and CEO Jeremy Alexander.
But about one in five of over 20 million participants had loans outstanding at the end of 2009, up from 18% at both year-end 2008 and year-end 2007.
The prevalence of retiree medical plans slid to its lowest point ever in 2010, with just 25% of large employers offering an ongoing plan to retirees under age 65.
The current minority government has agreed to increase the official retirement age to 66 in 2020, but has not yet passed any legislation.
There are two problems with Curtis Cloke's analysis of the relative merits of fees versus commissions for income annuities ("Fees vs. Commissions in SPIA Sales," RIJ, 11/17/10), writes Glenn Daily.
Late-breaking items from Prudential, Genworth and New York Life...