Asset Accumulation

Asset accumulation typically refers to the savings and growth of financial assets during the course of one’s working years. Assets accumulated during one’s working years provide the basis for decumulation during one’s retirement years.

DFA Retirement Income Efforts

Dimensional Fund Advisors (DFA) appears to be ramping-up its retirement income efforts.

Advisor One reported on the recent DFA-sponsored retirement planning conference in Chicago.

DFA's retirement income efforts appear to be largely focused on the defined contribution or 401k market.  DFA's retirement income offering is named "Managed DC."  The product appears to be offered exclusively in the retirement plan market.

DFA has a huge presence in the asset accumulation space with $232 billion in assets under management.

New Portfolio Management Technologies Could Further Commoditize Investment Advisory Services

Simple, web-based portfolio management tools have been proliferating over the past couple of years.

As reported recently by Bloomberg, companies such as Folio Investing, MarketRiders and Flat Fee Portfolios are providing subscription-based wealth management solutions that are largely automated and relatively inexpensive.

New Health Care Expense Software is Taking Aim at a Retirement Planning Void

There is a strong case to be made for health care as the linchpin of retirement planning.  Virtually every major aspect of the retirement planning process is somehow correlated to or contingent on health status.  For example, health status has an impact on each of the following retirement planning components:

eRollover CEO Tim Harrington on Filling a Void in the Retirement Planning Market

Tim Harrington is the Chairman and CEO of start-up eRollover.

Tim is a seasoned technology and consumer marketing entrepreneur.  Among Tim’s accomplishments is the ecommerce company Fogdog Sports--a venture he led from inception through successful IPO and post-IPO merger.

We had the opportunity to speak with Tim before his presentation at the Finovate conference in San Francisco.

 

Annuity Industry Pioneer Jerry Golden at Work on his Latest Venture

Jerry Golden--often referred to as the father of variable life insurance and variable annuities--has had a distinguished career as an innovator and entrepreneur in both the insurance and personal retirement businesses.

Jerry most recently spent four years as president of the Income Management Strategies Division at MassMutual after selling his business to the company in June, 2005.

Since leaving MassMutual in May, 2009, Jerry has been actively developing a new venture which will deliver yet another set of innovations to the personal retirement marketplace.

Francois Gadenne and the Formation of the Retirement Income Industry

Francois Gadenne is the Chairman and Executive Director of the Retirement Income Industry Association (RIIA).

Formed in 2006, RIIA is bringing together the leading minds and resources in the relatively young retirement income industry.  RIIA members include leading academics, banks, insurers, fund companies, financial advisors, brokerage houses, researchers, technology companies, marketing firms, consulting firms and media.

"Retirewent"

A very good article from Advisor One / Research Magazine on the challenges financial advisors face in developing practices that focus on retirement income planning.

A detailed discussion of how the discipline of retirement planning differs from asset accumulation.

Who Needs Annuities

Annuities are neither useful nor appropriate for many people.

As emphasized throughout this buying guide, a good financial plan that focuses on retirement income needs should be the foundation of any annuity purchase decision.

What is an Annuity

An annuity is a financial product that converts accumulated savings into guaranteed income.  In a very basic sense, annuities:

  • Turn a sum of money into a series of payments or a “stream of income.” 
  • Guarantee the stream of income over a specific timeframe.

 

Should I invest in a variable annuity?

Thanks for reaching-out.

It is generally very difficult if not impossible to provide a simple yes/no answer to this type of question without having much more detail regarding your situation and needs.  That said, here are some things to think about:

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