Fee-based indexed annuities have generous crediting terms. But unless fee-based advisors can decide how to bill clients for holding such a safe, low-maintenance product, they may not recommend the category at all. That would be a shame.
'The key lesson of Ronald Reagan’s “voodoo” supply-side economics has not changed: tax cuts like the ones proposed by President Trump do not lead to faster growth, but only to lower revenues,' writes the Nobel Prize-winning economist.
The annual management fee will rise if an actively-managed fund outperforms its benchmark index, but will fall if the fund underperforms its benchmark, according to press reports.
Technically, the 401(k) is a profit-sharing plan, not a pension plan. Under federal law, only pension plans need to offer in-plan retirement income options. A new TIAA whitepaper explains.
Mutual funds managed $3.3 trillion, or 65%, of assets held in 401(k) plans at the end of June 2017. Forty-eight percent of IRA assets, or $4.0 trillion, was invested in mutual funds, according to the ICI.
If advisors choose not to sell fee-based FIAs because the remuneration is unattractive, then the fiduciary rule will have backfired.
Among large bank holding companies, only Citigroup and KeyCorp posted significant increases in annuity commission revenue in the second quarter of 2017, according to the Michael White Associates quarterly bank annuity sales report.
Even if the DOL conflict of interest rule is ultimately diluted, it has reinforced shift to fee-based advice from commission-based sales, according to Bing Waldert, managing director of research at Cerulli Associates.
Brief or late-breaking items from One America, Voya, BlueRock, the National Reverse Mortgage Lenders Association, New York Life, Prudential, MassMutual, Ubiquity Retirement + Savings, and HealthEquity.