An Entrepreneur Tackles Decumulation, with TIPS

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.

Research Roundup

We summarize four recent papers: 'Portfolios for Long-Term Investors,' 'What is the Value of Annuities?,' 'Public Economics and Inequality: Uncovering Our Social Nature,' and 'Financial and Total Wealth Inequality with Low Interest Rates.'

An Annuity’s ‘Moneyness’? There’s an App for That

How will variable annuity contract owners use their income benefits? That question is vital to annuity issuers and to fiduciary advisers with clients who own VAs. This Texas Dep't of Insurance actuary knows a product that can help them find out.

A Chip Off the Old Rock?

Bloomberg reported this week that Prudential is considering selling its retirement plan recordkeeping business. Prudential didn't confirm the report, but several industry insiders did. Low interest rates, high costs of IT makeovers, and sticky stable value fund guarantees are driving the move, RIJ was told.

Decumulation Beat

Only advisors who are self-employed have the autonomy to use the fiduciary standard when working with clients.

Four Firms Capture Half of VA Sales

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.

Low Rates Squeeze Fixed Annuity Issuers

“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.

Health Benefit Costs Grow 3X Faster than CPI

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.

Letter to the Editor

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.

The Bucket

Late-breaking items from Prudential, Genworth and New York Life...