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.’

The Sacrificial Payroll Tax

Idle talk about suspending the payroll tax is making 'blue' Senators blue. We get answers from Social Security expert Eugene Steuerle of the Urban Institute.

An Income-Generating ‘Collar’

Using a 'protective net-credit collar,' the Nationwide Risk-Managed Income ETF has distributed monthly income at an annual rate of 7.88% in 2020, while appreciating 10%. Is there a catch?

Life Insurers’ Bermuda Triangle, Part II

The humble fixed indexed annuity is at the center of the restructuring hurricane that has swept through the life insurance industry in recent years. We bring you the second article in a series on the topic.
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.