Articles
In-depth analysis of how lifetime income products work, what they cost, and how to evaluate them. Mechanics first, no product recommendations.
Treasury Department Focuses on Longevity Risk with Retirement Income Guidance
The proposed regulations appear to be squarely focused on longevity risk. Data clearly indicates that people are running out of money as they age.
There is no Free Lunch for Retirees when it Comes to Investment Risk
Whether using math or listening to your gut, it makes sense to be very conservative with return assumptions because there really is no free lunch when it comes to investment risk during retirement.
Teresa Ghilarducci on Pension Reform
Teresa Ghilarducci is a staunch advocate of comprehensive pension reform.
Ten Questions to Ask When a Financial Advisor Says: "You Know I'm Not a Big Fan of Annuities"
Many financial advisors seem conditioned to wear annuity criticism as a sort of badge of honor. As the past couple of years have so painfully revealed, however, this conventional wisdom rests on shaky ground. What types of questions might a client present to an advisor who appears to have a…
Structured Settlements and Annuities
Annuities and structured settlements share a core similarity, but it is not correct to assume that annuities and structured settlements are one and the same.
Standalone Living Benefits Provide Guaranteed Income without Annuities
The standalone living benefit (“SALB”) is a relatively new and innovative product in the retirement income arena. A SALB is basically the same thing as the guaranteed lifetime withdrawal benefit (GLWB) that accompanies many variable annuities. The GLWB feature allows the contract holder to…
SOA Paper Examines Retirement Income Reality Gap
A recent paper sponsored by the Society of actuaries provides an impressive and comprehensive review of retirement income-related research.
Slides from David Babbel's Fixed Indexed Annuity Study - Recent Historical Evidence
This is a follow-up on two previous entries that discuss the fixed indexed annuity study from Wharton Professor David Babbel. The previous and related posts can be found here and here. Proper attribution, disclaimers and context for the study are discussed in these previous posts. It is worth…
The Singularity Presents an Extreme Scenario for Retirement and Annuities
There is a prominent and growing group of people who believe that the exponential pace of technological progress will have a profound near-term impact on society. Singularity is a term often associated with this school of thought.
Should You be Less Concerned about Liquidity?
Some very famous professional investors have built careers on the notion that liquid assets have higher returns than liquid assets.