Many people preparing for retirement could benefit from buying an annuity but miss out because they lack an understanding of the products, Walter Updegrave writes. Annuities' "mortality credits" make their returns hard to surpass without assuming greater risk, he writes. Money magazine (11/1)
A bill proposed by the federal government would let some federally regulated employers purchase annuities to take on their pension obligations under the Pension Benefits Standards Act in situations that don't involve a wind-up. The pension risk could be transferred to an immediate or deferred life annuity if certain conditions…
For people who want assurance that they won't run out of money in retirement, it's a good idea to set aside some savings to purchase annuities, Walter Updegrave writes. Generally, the best choices for secure retirement income are immediate annuities or deferred annuities, he writes. CNNMoney (10/26)
Nationwide Mutual Insurance will buy Jefferson National Insurance, an annuities company specializing in fee-based products. The Labor Department's fiduciary rule was a factor in the deal, and together the companies can better meet the growing demand for financial services in a fee-based environment, said Steve Rasmussen, Nationwide CEO. ThinkAdvisor (9/28),
Older retirement savers can purchase a type of deferred income annuity known as a qualified longevity annuity contract to put off the day they have to make the required minimum distributions from retirement accounts that are normally mandatory under IRS rules, writes financial planner Andrew Murdoch. "These allow individuals to…
Rather than presenting an obstacle to the sales of variable annuities, the Labor Department's new fiduciary rule could end up breathing new life into the sales of the products, said Warren Posner, senior vice president of complex product management with the independent broker-dealer LPL Financial. The change will take place…
Buying income annuities that deliver yields that take advantage of mortality pooling is one of the most effective approaches to obtaining higher returns without putting assets at risk in a time of low interest rates, writes Michael Finke. Among the various types available in the retirement market, a deferred income…
Flexible premium deferred annuities are among the new options for covering the costs of long-term care proposed by the Long-Term Care Think Tank to the Society of Actuaries. The option, called a family long-term-care account, would pay a monthly benefit if any member of the family requires long-term care. InsuranceNewsNet…
The owners of family businesses have a limited amount of time to take advantage of the tax breaks provided by the discounts allowed for grantor retained annuity trusts, write Robert Bloink and William Byrnes. Proposed Treasury Department rules restricting the use of this discount are expected to take effect around…
The Government Accountability Office said in a report that the Labor Department should do more to encourage 401(k) plan sponsors to offer annuities and other lifetime income options. Adding annuity options to 401(k)s by providing clearer criteria for selecting annuity providers would increase their use, GAO said. LifeHealthPro (9/10), BenefitsPro.com…
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