Tom Cochrane's Blog

More from Professor Babbel's Study - The Long-Run View of Equity Indexed Annuity Performance

The first part of Professor Babbel's presentation looked at the comparative performance of fixed indexed annuities and alternative investments over a 15 year period.

This next set of slides looks at performance over a much longer time period--dating back to January 1926. 

The implied account values of the 9 year and 14 year fixed indexed annuities are again compared to the alternative investments:

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Listen to Zvi Bodie When it Comes to Retirement Planning

Zvi Bodie is absolutely one of the most honest and refreshing voices in finance and economics.  Professor Bodie also happens to be an advocate of life-cycle investing.

A recent interview with Bodie is highly recommended and available in U.S. News & World Report.

Highlights from the interview include:

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Obama Administration Proposes Fiduciary Standards for Brokers

The Obama administration's proposed financial services regulatory overhaul may have a profound impact on the way that investment advice is disseminated in the United States.

The administration's proposal would impose a...

Zvi Bodie on the Safety of Stocks in the Long Run

The notion that stocks are risky in the short-run but safe in the long run is a dangerous financial fallacy according to Boston University professor Zvi Bodie.

Professor Bodie has been communicating this view consistently for many years, and the financial crisis has provided strong support for his argument.

The gist of Bodie's view involves that impact that equity market...

The Fixed Indexed Annuity Study from Wharton Professor David Babbel

There is in fact a study from Professor David Babbel that compares the performance of fixed indexed annuities to portfolios of stocks and bonds and it is fascinating.

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