The Essence of Goal-Based Investing

Goal-based investing is more than just mental accounting that assigns labels like “house,” “college” or “retirement” to different pots of money. It's ultimately about risk management, as we learned from Lionel Martellini, director of France's EDHEC RIsk Institute.

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.

Chile’s Pension Crunch

The author, a former presidential candidate and finance minister of Chile, teaches at Columbia University's School of International and Public Affairs.

AXA wins excessive fee litigation suit

U.S. Judge Peter G. Sheridan ruled that the plaintiffs failed to prove that AXA Equitable’s Fund Management Group had charged “exorbitant fees” while delegating “all of the services” to sub-advisers or a sub-administrator for a “nominal amount.”

Honorable Mention

Brief or late-breaking items from Voya Financial, MassMutual, TIAA, Diversified Services Group, Ameritas, The Guardian, and the World Demographic and Ageing Forum.