Financial Crisis

"In-Plan" annuities refer to the use of annuities within defined contribution pension programs such as 401k plans. The concept is relatively new, but the timing should be a perfect the concept to gain traction: The financial crisis has devastated the portfolios of many retirees and near-retirees. Millions of baby boomers will add to the 70 million or so U.S. residents over the age of 55. People are starving for stable, guaranteed sources of income in light of market volatility and increasing...

MetLife 's leading position in the U.S. annuity industry is only getting stronger. The company is benefitting from financial crisis-related flight to quality. In other words, financial advisors and customers who are concerned about credit risk are migrating to a handful of the strongest insurers. MetLife expects variable annuity sales to exceed $15 billion in 2009--exceeding pre-financial crisis revenue levels in 2007. The company has also seen an increase in fixed annuity business. Source:...

A significant portion of U.K. workers over the age of 55 are modifying their retirement plans in light of the recession and financial crisis. A study by U.K. retirement specialist MGM Advantage found that 1.85 million near-retirees are planning to work longer than expected in hope of repairing their pensions and personal finances. The study also revealed: 35% of near-retirees have done nothing at all to prepare for retirement. 9.3% of workers over age 55 have considered tapping into equity in...

Inflation can be a positive for the owner of a fixed mortgage since the real value of future mortgage payments decreases. Inflation is terrible for the receiver of fixed payments since the real value of future receipts is eroded by inflation. As Brett Arends of the Wall Street Journal suggests in a recent column, owners of Treasurys and other fixed income investments (bonds) should be acutely aware of the risks that exist in the current environment. One scenario suggests that owners of 10 year...