Why Financial De-Risking May Leave Consumers at a Loss
The term de-risk has been appearing frequently in recent financial news.
General Motors’ recent decision to offer lump-sum...
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Insurance
A contract that involves the insured paying a premium to an insurance company in exchange for protection against the risk of a large loss.
Mark Warshawsky on the Retirement Income Market
Mark J. Warshawsky is Director of Retirement Research at Towers Watson.
Dr. Warshawsky served as assistant secretary for economic policy at the U.S. Treasury Department from 2004-2006 and he has held senior level economic research positions at the Federal Reserve Board, the Internal Revenue Service and...
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3.87 Percent Inflation Increase for Penn Mutual Variable Annuity
The Penn Mutual Inflation Protector variable annuity was launched in November 2010. This variable annuity product incorporates a living benefit feature and is designed to provide owners with an income base that keeps pace with the rate of inflation. The income base of the Penn Mutual Inflation Protector increases based upon the greater of: The rate of inflation as measured by the consumer price index urban (CPI-U), or; Annual market performance. The inflation increases are capped at a maximum...
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Why Fixed Annuities Could Prove Toxic in an Era of Financial Repression
In a recent and highly recommended Bloomberg op-ed, Carmen Reinhart discusses the options available to governments and central banks when attempting to deal with the burden of enormous amounts of public and private debt.
Reinhart suggests that the preferred policy option for many governments--including the United States--is a form of stealth taxation that amounts to...
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Short-Term Focus has Adverse Impact on Retirement Income Product Development
Warren Buffett’s most recent shareholder letter focuses on the merits of productive assets such as equities in light of the current low interest rate environment and the potential for future inflation.
Buffett’s view is that although productive assets are variable and volatile, they are more likely to preserve future purchasing power than the fixed or currency-based alternatives.
Buffett’s advice would seem to provide a key...
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