Shopping for an annuity, like shopping for a car, involves questions about the manufacturer of the product. Do their products perform as expected? Will service quality be high? Are they likely to stay in business? We show you where to look for answers.
The 401(k) system still hasn’t produced the generation of wealthy retirees that, under ideal conditions, it could have. Scholars from the American Enterprise Institute and the Center for Retirement Research at Boston College explain why.
Many actively managed bond funds are riskier than advertised, and often provide higher returns than their stated portfolio holdings would suggest, according to research by business school professors at Harvard, Notre Dame and the University of Texas.
'I recommend that an adviser develop his or her own criteria and put together a template, similar to an RFP, with questions to have answered when considering an annuity issuer,' said Louis Harvey of Dalbar.
'Had real interest rates not gone down over the last half century, savings would have exceeded investment in OECD countries by between 9 and 14 percentage points of GDP,' Larry Summers and Lukasz Rachel write.