Wealth Management

Wealth management is a broad term that means many things to many people. At a high-level, wealth management is a professional service to manage financial risk and tax obligations. A combination of services are offered including portfolio management, insurance and estate planning, accounting and tax services for one fee. Compensation for wealth management services is typically a percentage of assets under management. Wealth management advisors look not just to maximize wealth for their clients, but also to meet financial goals for the family--to ensure as much as possible is passed down to the heirs and also to meet charitable and philanthropic objectives. While top wealth management firms may require account minimums that are in the millions, smaller firms may offer the advisory services for portfolios as small as $50,000.

Boring and Conservative are the New Darlings of Wealth Management

A recent Wall Street Journal article discusses the renewed focus on conservative and rather boring investment options among the wealth management community. In the wake of extreme capital market volatility during the past couple of years, wealth managers have returned to basics in their discussions with current and prospective clients. Among the more mundane options that are frequently discussed are: Annuities, and in particular fixed annuities. Bank deposits. Dividend paying stocks. Face to...

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How to Determine a Sustainable Level of Retirement Spending

What is the probability that a given level of spending is realistic or “sustainable” throughout one’s retirement?

Stated differently, what is the likelihood that a given level of retirement spending is fraught with...

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Probability of Financial Ruin

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Financial Advisors on the Defensive as Variable Annuities Prove to be Among Best Wealth Management Vehicles of Past Decade

A recent article from Wall Street Journal columnist Leslie Scism discusses the value that has been preserved and delivered over the past several years by variable annuities and living benefits . Despite intense media criticism and generally negative perceptions among financial advisors, variable annuities have been among the best wealth management vehicles of the past decade. The performance and value have been especially evident during the recent capital markets implosion. Scism makes the...

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Annuity

Guaranteed Living Benefit

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Annuity

Guaranteed Living Benefit

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New Study Assesses Use of Annuities in Wealth Management Strategies

Two industry-leading consultants have published a study that compares a range of wealth management strategies that are available to individuals in retirement. None of the strategies are dominant on an overall basis, but certain approaches show clear strengths in terms of income generation, levels of wealth, and the impact on bequest motives. The dramatic impact of product fees is also addressed. Six different retirement strategies are discussed: Systematic withdrawal from mutual funds. Fixed...

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Annuity

Annuitization

Guaranteed Minimum Withdrawal Benefit

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