People planning for long-term-care expenses frequently overlook annuities as a funding option, according to Maryalene LaPonsie. The overall costs of annuities may be less than the premiums most consumers would pay for long-term-care insurance, she writes.
Simple income annuities are a better way to generate retirement income than bonds, writes Matt Carey of Blueprint Income. He argues that annuities outperform bonds in a retirement portfolio and that it takes less money to generate the same amount of income from annuities than from bond ladders.
Four officials of financial services groups sent a letter to the National Association of Insurance Commissioners' Annuity Suitability Working Group calling for clarity in proposed new rules for the sales of annuities. They expressed skepticism about a "best-interest" standard, arguing annuity sellers need real-world guidance they can understand.
A client who appears to have a spending problem might actually have a trust issue with their advisor, writes certified financial planner Michael Kitces of Pinnacle Advisory Group. He discusses why clients may conceal the fact they have other assets being managed by another advisor and how he deals with it in his own practice.
Republican and Democratic senators said they will work to enact legislation that would give Congress a voice on whether the US imposes tariffs on national security grounds. However, House Speaker Paul Ryan, R-Wis., said Congress would do better to cooperate with the Trump administration to change policy.
The Commodity Futures Trading Commission has issued an advisory about the risks involved in initial coin offerings and cryptoassets. The CFTC's advisory says "digital tokens and coins can also be derivatives or commodities, depending on how they are structured."
Nearly one-third of millennials said they are not saving for retirement because they don't see the point when "anything can happen between now and then," according to PGIM Investment's 2018 Retirement Preparedness Survey. More than half of millennials surveyed said they plan on retiring whenever they have enough saved.
The number of 401(k) plans offered by small businesses rose to 8,873 last year, compared with 1,418 in 2013, according to the Vanguard Retirement Plan Access report. Jean Young, author of the report, says she expects professionally managed allocations such as target-date funds to be increasingly used in the small-business marketplace.
The Summer 2018 issue of IRI Insight includes an examination of the unique retirement risks faced by women, and the opportunities advisors have to help them plan. This issue also introduces "IRI Fast Facts," an infographic of select findings from our exclusive research that provide perspective on the retirement-planning challenges Americans face today. The issue includes articles on engaging families in long-term-care planning, optimizing Social Security benefits, volatility managed strategies and an interesting look at what clients say when their advisors are not in the room.
The IRI Retirement Fact Book 2018 is the definitive guide for the retirement income industry and the go-to resource for financial professionals and public policymakers. The latest edition provides the most recent research on generational retirement readiness, demographic insights and marketing trends from the retirement income marketplace, bolstered by market research and sales data. Other updates include a review of new developments in product innovation and the legal/regulatory environment. Download the PDF or order a printed copy here.