Principal Adds ‘In-Plan’ Deferred Income Annuity Option
Participants in Principal Financial defined contribution plans will be able to buy deferred income annuities a little at a time or in a lump sum just before retirement.
‘De-Risky’ Business
Prudential has dominated the burgeoning market in jumbo pension buyouts. In the week following Prudential deals with JC Penney and Philips Electronics, RIJ spoke with Peggy McDonald (above), an actuary and a leader in the insurer's pension risk transfer team.
Go Ahead, Buy the Harley
New research in the Journal of Personal Finance shows why retirees can spend 20% more in early retirement than the 4% rule allows. In our latest research roundup, we also highlight research on aging, the demographic aspects of investment mistakes and Social Security claiming.
Takeaways from the FPA Conference in Boston
At the Financial Planning Association's Business and Education Conference in Boston last weekend, Bill Reichenstein talked about tax-efficient withdrawal strategies, Steve Deschenes made a case for income-oriented American Funds, and David Blanchett explained that retirement might cost less than expected.
Featured
DOL “delouses” socially responsible investments
Economically-targeted investments, including socially-responsible mutual funds and "green bonds," can be offered in ERISA-regulated retirement plans if they offer competitive return expectations and no unusual risk, Labor Secretary Tom Perez said Thursday.
RetirePreneur: Cindy Hounsell
Cindy Hounsell is the founder and president of the nonprofit organization, Women’s Institute for a Secure Retirement.
News
As DOL ponders fiduciary proposal, retail channel assets grow
“U.S. retail channels have exhibited strong growth in recent years, driven primarily by Baby Boomers transitioning assets out of traditional institutional channels, such as 401(k) plans,” said Jennifer Muzerall, senior analyst at Cerulli, in a release.
Quote of the Week
"If some people have skills that are worth paying for, but it is difficult to determine who they are, everyone will be able to charge more. This mechanism is part of the explanation of high profits - and high remuneration - in the financial sector. Price competition is also often ineffectual when the item in question represents only a small part of the overall cost of the transaction." - John Kay, in "Other People's Money" (Public Affairs, 2015).
