VA closures, buy-backs send wrong message: SEC

The director of the SEC Division of Investment Management said VA issuers seem to be telling investors, ‘Here is the deal we are offering you, unless we find out later that we miscalculated.’

SEC: VA closures, buybacks send wrong message

The director of the SEC Division of Investment Management said VA issuers seem to be telling investors, ‘Here is the deal we are offering you, unless we find out later that we miscalculated.’

‘Smart,’ from UK, Enters the US PEP Market

'Smart' is the recently-launched American branch of a British fintech with expertise in a kind of retirement savings plan that's called a 'master trust' in the UK and a 'pooled employer plan' or PEP in the US. RIJ interviewed two of its top executives.

Research Roundup

Almost every controversial subject in the US today--from Fed policy to machine learning to immigration--contains an element or theme related to retirement policy. The articles reviewed in this month's Research Roundup are proof of that.

‘iTDFs’ Smooth the Bumps of Retirement Income

A former chief actuary of Denmark seeks a US target date fund company that might use his technology, the 'iTDF,' to create a seamless transition from pre-retirement savings to safe income during the first 20 years of retirement.
Featured

Sampling the Breakfast Buffett at NAPFA

At the 2012 NAPFA East conference in Baltimore this week, Warren Buffett biographer Alice Schroeder identified the next big growth industries. Attendees seemed to need some post-election tonic.

Fees will soon rise on several VA contracts: Morningstar

The carriers who recently limited additional investment dollars into existing variable annuity contracts and benefits include Allianz, AXA, MetLife, John Hancock, Prudential and Transamerica, Morningstar said.
News

Celent: Stop gaming the system

Between 5% and 10% of the population of some developing countries may have gone back into poverty due to the economic effect of the 2007-2008 financial crisis in those countries, a Celent analyst wrote.

Retirement insecurity rose from 2007 to 2010, academics say

A retiree with $100,000 will receive $492 per month from an inflation-indexed annuity when the real interest rate is 3% compared to $413 per month when it is 1.5%, according to the Center for Retirement Research at Boston College, in a study sponsored by Prudential.

Lack of Social Security savvy will be costly: BMO

While 91% of survey respondents understood that waiting longer increases the monthly amount they will receive, almost half admitted they are currently collecting or planning to collect before full retirement age, according to a report from the BMO Retirement Institute.

ABB ordered to post $50m bond due to 401(k) violations

The company was ordered to post the bond within ten days while it appeals a $50 million judgment against it and Fidelity Investments for ERISA violations in the management of its employee retirement plan, according to the attorney for the employees.

Quote of the Week

"We are not in the clairvoyance business. Get out of that business”--Jim C. Otar, to fellow financial advisors during a presentation on retirement income planning at the 2012 NAPFA East conference in Baltimore, Nov. 7, 2012.