March 2011
2 posts
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If you're shopping for a variable annuity, you...
Here we go again. Several insurers are poised to enhance their variable annuity product offerings in their May filings with the SEC. This list includes: Transamerica, Lincoln, John Hancock, and Metlife.
But as opposed to the 2007 “Arms Race” where insurers competed on generous features, with less caution for a doomsday scenario (e.g. 2008), these products will be a combination of...
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Check out my new site: www.NoBullAnnuities.com
I’ve created www.NoBullAnnuities.com/ as a free, unbiased resource to help consumer do their homework when considering a variable annuity.
On the site you’ll find interactive tools that allow you to visually compare annuities. We’re currently looking for volunteers to test it out before it is released to the masses. If you’re interested, please sign up...
November 2010
1 post
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October 2010
1 post
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September 2010
4 posts
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Some 401(k) Plans Are Adding an Annuity Option →
In light of the Dept of Labor & Treasury talks with annuity industry, the linked article explains some of the approaches insurance providers are offering annuities inside 401(k)’s.
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Vanguard Introduces Online Annuity Service
The Vanguard Annuity Access platform will offer their customers the ability to shop and compare immediate and fixed deferred annuities from multiple careers online for a 2% upfront fee.
This is great news for web savvy boomers who are looking to purchase fixed annuities online.
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Most Investors Clueless on Annuity Guarantees →
According to this study by Allianz, only 27% of those surveyed know about variable annuity innovations made in the last 10 years. Rather, they base their view on research that was done 10 - 20 years ago. Scary!
There is much education that needs to be done to help the american public make informed decisions on meeting their retirement needs.
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August 2010
9 posts
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David Babbel & His "Controversial" Annuity Study
The Wall Street Journal recently published an article entitled: “Beware of ‘Independent’ Investing Research”. In the article it discusses a study on annuities that was performed by University of Pennsylvania’s Wharton School, led by David Babbel. The controversial title of the WSJ articles stems from the fact that the study was co-sponsored by New York Life.
For...
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Anonymous asked: I have a Lincoln Financial Group variable annuity which was purchased with the help of a reputable fee-based advisor. I have owned this annuity for about one year. I am 61years of age, retired, and also have pension. What are your thoughts in regards to this particular company?
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“As income taxes go up and personal exemptions are phased out, the ability to...”
– - Moshe Milevsky, from the article “An Annuity: What No Well-Heeled Client Can Do Without,” by Warren S. Hersch
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Allocation to Deferred Variable Annuities with... →
The value proposition of a Guaranteed Lifetime Withdrawal Benefit (GLWB) is dynamic in nature; it depends upon the interaction of the preferences, behaviors, and demographics of the policyholder. As such, there is no one size fits all answer to questions like “How much of my portfolio should I allocate to a variable annuity with a GLWB?”
In this study, Ibbotson analyzes how the...
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Behavioral Economics and Retirement Investing →
PIMCO’s recent study examines how framing retirement solutions reflects their perceived value by consumers.
Framing a retirement product as an “income solution” rather than investment returns is more appealing, as it comes across as a stable form of retirement consumption that aligns with their perceived expenses. However, most retirees typically don’t think about...
July 2010
10 posts
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“Many fee-based advisors continue to shun annuities, finding them too complex or...”
– Excerpt from the article: “Annuities From Bust to Boom” by Paul Menchaca
“ “Maintaining income that meets your needs” topped the list when we asked...”
– Frank M. Porcelli, Investment News
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Top Pro Athlete Pension Plans →
Want a better retirement package? Work on your jump shot.
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My Sincere Apologies to AXA Equitable
I take great pride in my knowledge of the detailed innerworkings of variable annuity products. When I write articles on VA’s I go to great lengths to research and make sure that I know what I am talking about with a fine level of detail. I take it very seriously if there are any inaccuracies.
Last week I wrote an article discussing some of the new products on the market, one of which was...
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Dr Moshe Milevsky Talks Annuities →
While there are countless articles on annuities that are filled with bias and mis-information (regardless of opinion), Professor Milevsky is one source that knows what he is talking about and tells it like it is.
In this short interview the Professor mentions the findings of a survey of retired Americans: those who own annuities are more comfortable and happy in retirement than those with a...
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Is a ‘Two-Cylinder’ VA Better Than a Single? →
My latest article on current VA trends was published as this week’s cover story at Retirement Income Journal. If you’d like a copy of the article, just send me a note (Click on the “email me” button on the left).
New York Eyes Annuity Withdrawal Disclosures →
This should be a no brainer. If a policyholder unknowingly attempts to make an “excess withdrawal” that would adversely affect their policy (i.e. reduce their guaranteed lifetime income), the insurer should warn them and give them the opportunity to reverse their decision. Why insurers don’t already do this is beyond me, but kudos to Michael Maffei of the NY Dept of Insurance...
June 2010
1 post
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March 2010
1 post
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Annuity Riders partners with Numerix →
Annuity Riders now offers our clients the Numerix Asset & Liability stochastic modeling platforms as well as their robust economic scenario generators. In the future, we expect to offer consulting services to new and existing Numerix users.
August 2009
3 posts
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“My adventures in Europe took another interesting twist – it would be five...”
– My entry for the “International Actuaries” essay contest
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Common complaints of GLWB's →
Some of the traditional complaints against variable annuity guarantees and my comments
June 2009
2 posts
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A Changing Variable Annuity Landscape -- What to... →
Part 2 of my interview with Annuity Digest
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A Changing Variable Annuity Landscape -- The... →
Part 1 of my interview with Annuity Digest
May 2009
1 post
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Do you think guaranteed for life income riders... →
My response, as originally posted on linkedIn
December 2008
2 posts
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What Exactly is Variable Annuity Hedging? →
Hedging is a term thrown around when discussing variable annuity manufactures. But unless you work in the biz, there’s a lot of confusion and misconceptions about hedging, how it works, and what the goals are. In this article, I attempt to explain the basics to the layman.
The Full Story on Annuities →
Annuities and their issuers have been all over the news lately - getting a lot of bad press. It’s one thing to report the truth about the industry, but its another thing to talk negatively about a subject an author doesn’t understand and put out misguided information to scare investors (there is a time and place for this sort of behavior, but it requires running for a political...
November 2008
4 posts
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Guardian Life & Annuity Gets Rating Upgrade →
In times where many life insurers are in danger of getting ratings downgrades, Guardian Life just got an upgrade from A.M. Best.
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New wave of Variable Annuity Products on the... →
In light of the current market environment, a number of the annuity providers are redesigning or repricing their guarantees. The bottom line is that due to increased market volatility, it is a lot more expense for insurers to offer market guarantees - up to 80% more expensive than a year ago.
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Big Annuity Players are Thinking Outside the Box... →
Some of the big annuity players are so determined on getting government funding that they have taken on a new attitude: if the treasury won’t change their eligibility criteria then we will change our company to meet the criteria.
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Survival of the Fittest in the Variable Annuity... →
The last few months haven’t exactly been the best of times for the insurance industry. And this past week wasn’t any better. A number of companies stocks took another sharp hit after Goldman’s Chris Necaypor released his analysis of the industry earlier this week. On top of that, it seems like ratings cuts may be around the corner for a number of companies if they don’t...