Asset Returns

No Time for Guarantees

The concept is seductive: a financial product that provides upside exposure in the event that equity markets trend up and to the right while also providing a floor of protection in case the bottom falls-out from under markets again.

Sort of like having your cake and eating it too. Very tempting in light of the massive financial uncertainty that has existed for the past several years.

Products playing into this “upside plus protection” theme include (but are not limited to) variable annuities with guaranteed...

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Part Two of the Interview with Wharton Professor David Babbel

This is the second part of an interview with Professor David Babbel.

Part one can be found here.

...

Glossary:

Sequence of Returns Effect

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Read more about Part Two of the Interview with Wharton Professor David Babbel
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Key Phrases:

Glossary:

Sequence of Returns Effect

Key Phrases Autotag:

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: