Selling Income Annuities on Greed, Not Fear

Iowa advisor Curtis Cloke claims that his 'Thrive” system,' which finances retirement with period certain, cash-refund deferred income annuities, offers safety without sacrificing upside. He's one of RIJ's 'RetiremEntrepreneurs.'

Research Roundup

We summarize four recent papers: 'Portfolios for Long-Term Investors,' 'What is the Value of Annuities?,' 'Public Economics and Inequality: Uncovering Our Social Nature,' and 'Financial and Total Wealth Inequality with Low Interest Rates.'

An Annuity’s ‘Moneyness’? There’s an App for That

How will variable annuity contract owners use their income benefits? That question is vital to annuity issuers and to fiduciary advisers with clients who own VAs. This Texas Dep't of Insurance actuary knows a product that can help them find out.

A Chip Off the Old Rock?

Bloomberg reported this week that Prudential is considering selling its retirement plan recordkeeping business. Prudential didn't confirm the report, but several industry insiders did. Low interest rates, high costs of IT makeovers, and sticky stable value fund guarantees are driving the move, RIJ was told.

Occupy QE

The Fed is relying on the 'wealth effect' – brought about largely by increasing equity and home prices – as its principal transmission mechanism for stabilization policy. There are serious problems with this approach, writes the former chairman of Morgan Stanley Asia.

An Old Argument for Annuities, Made New

The Thrive Income Distribution System takes an ancient annuity marketing pitch and dresses it up well enough to appeal to high net worth clients who otherwise might not spend five minutes looking at an income annuity.

Three percent GDP growth for next three years: BNY Mellon

The Fed will fall “behind the curve” in its monetary policy, creating pressure for a major upward spike in interest rates in 2017 or 2018, following the Presidential election of 2016, predicts economist Richard B. Hoey.

Fidelity to raise equity allocations in target date funds

Fidelity is the largest provider of target date funds with more than $170 billion under management on behalf of approximately 6.5 million investors in its Fidelity Freedom Funds product line (Fidelity, Fidelity Advisor, Fidelity Index and VIP).