GM closed its defined benefit plan in 2012. Its 401(k) provider is Fidelity. To offer its DC plan participants an option to roll over part of their savings to an income annuity at retirement, it chose Hueler's Income Solutions Annuity Marketplace, an online annuity purchasing platform.
'While mimicking the high payouts of an actuarially fair variable life annuity, TSAs would cost significantly less than commercial life annuities,' write Forman and Fullmer.
'We have all these insurance agents selling billions of dollars of fixed indexed annuities. But they have few clues about how the crediting rates have performed,'' says Kent Jacquay. With his Indexalyzer software, he proposes a solution.
Achaean Financial and Ash Brokerage, a large Fort Wayne, Ind., BGA, are partnering on a potential retirement game-changer: Achaean's immediate indexed income annuity, couched in Ash's JourneyGuide planning software. The underwriter has yet to be named.
Managed payout funds may fail if the client lives too long. Life annuities overcome that problem, but lack sufficient flexibility. 'The best results can be obtained by combining SPIAs and flexible withdrawals,' writes the author, an actuary and financial planner.
We obsess about safe withdrawal rates. But the developer of the "7Twelve Portfolio" shows that anyone retiring from 1970 to 1990 would have vastly underspent by using the '4% rule.' He suggests that excess caution can be as much a hazard as excess spending.
In the 2015 edition of an annual report, Conning named 20 life/annuity specialists for superior performance, based on their operating margin, return on surplus, premium growth, sales and other metrics.