Exec: Advisors can offer annuities while complying with fiduciary standards | Expert: Annuities offer volatility protection for people close to retirement | Lincoln launches new indexed variable annuity
There is no conflict between offering annuities to clients who would benefit from them and fully complying with a fiduciary standard, said Kent Sluyter, president of Prudential Annuities. "Annuities are not the answer for everybody, but they can play an important role in helping many people secure retirement income, which is important," he said.
Investors close to retirement or already retired should consider buying annuities to shelter their savings from losses due to market volatility, says Mark Charnet, CEO of American Prosperity Group. With a living benefit rider, the retiree is guaranteed income for life even if the value of the assets held within the annuity contract declines in value, he says.
Lincoln Financial Group has brought to the retirement market a new indexed variable annuity that offers a variety of indexes and optional protection from index-linked losses ranging from 10% to 100%. Purchasers of the Lincoln Level Advantage indexed annuity have the option of adding an income rider for a guaranteed lifetime income stream.
PIMCO executive Mihir Worah says bonds have been a reliable hedge against volatility in the past nine years of low inflation, but now that the balance of risk is changing, their effectiveness as a hedge against stocks is waning. A number of advisors and planners have commented they are trimming their long positions in bonds.
Alimony will no longer be tax-deductible for divorce settlements reached in 2019 and beyond under the new tax law. However, couples may be able to manage the issue by substituting retirement funds in pretax savings plans in place of alimony.
Examinations by the Financial Industry Regulatory Authority will look at compliance if the Securities and Exchange Commission adopts a best-interest rule for broker-dealers, FINRA President and CEO Robert Cook says. "That said, it's not our rule, so exactly what the rule means and how it gets overseen is something we'll be working closely with the SEC on just as we do for other rules that we monitor for compliance," he says.
The North American Securities Administrators Association has completed a sweep of enforcement actions directed at initial coin offerings and other cryptocurrency transactions. "Operation Cryptosweep" included 35 ongoing or completed enforcement actions, as well as investigations and inquiries, the association says.
Research by SmartAsset revealed four simple steps advisors can take to turn prospects into clients. Tactics shared by top closers include taking action within a week of receiving leads and reaching out to prospects outside of normal business hours.
Targeting a niche group of prospects could prove more fruitful for an advisor than marketing themselves or their firms as generalists, writes Michael Kitces of Pinnacle Advisory Group. He offers tips on niche marketing, including creating a content hub to invite prospects to engage and forming relationships with key influencers in the niche group.
This year's boomer study demonstrates yet again the marked difference between boomers who have engaged financial professionals to help them build comprehensive and effective retirement plans, and those who have not. Read more here.
All historic eras must come to an end, and at the Insured Retirement Institute, we're coming to the end of a great one and the start of a new one. In this issue of Insight, IRI's CEO, Cathy Weatherford, reflects on the past decade of IRI's accomplishments, and looks toward the future of IRI and the retirement income industry. Also in this issue of IRI Insight: "Summary: 2017 Tax Cuts and Jobs Act," "Protection, Growth and Income: New Research From IRI and AXA" and "Thwarting Elder Financial Abuse." Download your copy here.