“What Investors Really Want”

That’s the name of behavioral economist Meir Statman’s new book. We all yearn for upside potential and downside protection—and maybe a weekly Lotto ticket, he says.

Examining the Indices in Index-Linked Annuities

A mountain biker needs 18 or 21 gears to smooth a path over rocks and through arroyos. Index-linked annuities now collectively offer some 140 index choices. Hybrid indices can theoretically smooth an investor’s path through rocky markets--but they're complicated.

The Point of Indexing (in Annuities)

Every June, RIJ focuses on indexed annuities. Last year, we studied options in indexed annuities. This year we consider the indexes themselves, especially 'hybrid' and 'volatility-controlled' indexes. Bryan Anderson, Don Dady and David Lau weighed in.

The Irony of Inflation Forecasting (Research Roundup)

In this month's roundup, we learn that CEOs pay little attention to inflation. We also find out why retirees keep saving, why "centaurs" pick stocks so well, which financial biases keep people poor, and how working longer affects male mortality.
News

By Another Name, Annuities Would Smell Sweeter

Some 80% of 3,200 people surveyed preferred a product with four percent return and a principal guarantee over a product with an 8% return subject to market risk. But they balk at the word, “annuity.”

Fitch Deems Life Insurers “Stable”

Fitch expects the industry's large in-force variable annuity business to hurt profitability over the near term, however, and could damage industry earnings and capital in an unexpected, but still possible, severe stress scenario.

SIFMA Urges Uniform Standard for Advisors, Brokers

Broker-dealers and investment advisers should appropriately manage conflict of interest by providing individual investors with full disclosure that is simple and clear and allows them to make informed investment decisions, SIFMA said.

Jefferson National Offers DFA Funds

Jefferson National’s Monument Advisor VA contract offers more than 250 investment options, or five times the number offered by most VAs, the company said.

The Big Red Stag’s Mistake

In ordinary times, The Hartford's letter-gate problem might vanish quickly. But investors are nervous, a big election is coming up, and the reputation of the financial services industry is fragile. A cap-gun could set off a panic.