Market Volatility

Are Equity Indexed Annuities Really the Top Performing Asset Class Since 1995?

A recent article in Forbes magazine discusses the pros and cons of equity indexed annuities.

On the negative side the author makes a high level reference to costs and questions whether...

Large Declines in Variable Annuity Sales Seen While Fixed Annuity Sales Surge

Sales of variable annuity products in the United States cratered 27% during the first quarter of 2009. First quarter sales were $30.7 billion compared to $40.9 billion during the first three months of 2008. At the same time, sales of fixed annuities surged 74% to $35.6 billion. This is the first time since 1995 that sales of fixed annuities have exceeded sales of variable annuities for two straight quarters. This sales dynamic is not surprising and is largely a reaction to the market volatility...

Not All Target Date Funds are Created Equal

Conservative is in the eye of the beholder when it comes to target date funds. Very generally, target date funds are mutual fund offerings that automatically shift asset allocations to a more conservative profile as the fund owner approaches retirement age. In other words, a "2015" fund may be purchased by someone intending to retire on or around 2015. This 2015 fund will likely move towards a higher bond and lower equity allocation as 2015 approaches. It turns out that target date funds can be...

Start Thinking of Retirement Account as Part of Your "Longevity Planning"

Forbes magazine publishes a relatively new section called "Forbes Woman" that is dedicated to issues affecting professional and executive women. A recent column discusses financial planning and the need to consider longevity risk when constructing a portfolio--particularly in light of recent capital market volatility . Longevity risk is especially relevant to women since their life expectancies are longer than men. In addition, many women find themselves solely responsible for their family...

Fixed Annuity Sales Continue to Soar While Massive Inflation Risks are Ignored

Bloomberg reports that there is continued strength in fixed and immediate...

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