Advisors can help clients develop retirement income plan | Survey: Inflation, outliving assets concern retirees | Brighthouse changes RILA hedging strategy as sales soar
Guaranteed withdrawal benefits and immediate annuities are the two insurance products that provide guaranteed retirement income, and advisors need to help clients determine which is best for them, according to Glenn Dial, senior retirement strategist at American Century Investments. Both have their place, but clients will need guidance on which to start with, Dial says.
Saying Goodbye to BAX: A Strategic Shift Benchmark interest rates are crucial in directing investment strategies, shaping economic policies, and impacting lending rates in the global finance landscape. Read more.
Sixty-eight percent of US retirees are concerned about outliving their assets, according to a Schroders survey that included Americans under the age of 79. Inflation was a key concern among respondents, with 89% pointing to it as an issue.
In the past, Brighthouse used the same basket of options to hedge its registered index-linked annuities and variable annuities, but sales of RILAs have been so strong that they will get their own basket of options, says Brighthouse Chief Financial Officer Ed Spehar. The RILA options "will directly offset the guarantees that we are selling in the product," Spehar says.
Life and annuity issuers are expected to remain resilient even if there is a severe downturn in the real estate market, according to Fitch Ratings. "There's significant headroom as a result of strong capitalization levels and high loan quality," said Fitch's David Marek during a recent webinar.
The trust funds used by the Social Security Administration will last one year longer than previously thought, eventually running out in 2035, according to the annual trustees' report. Social Security Commissioner Martin O'Malley called the report "a measure of good news for the millions of Americans who depend on Social Security," while also urging Congress to extend the solvency of the program.
The Department of Labor's goal with its new fiduciary rule is to make every financial advisor a fiduciary, said Scott Sinder, partner in the Washington law firm Steptoe. Sinder discusses how the rule redefines fiduciaries to target what the department sees as regulatory gaps.
Gurbir Grewal, the Securities and Exchange Commission's director of the division of enforcement, said during a recent conference that he is focused on three areas of enforcement: insider trading, off-channel communications, and false and misleading statements about the use of artificial intelligence. On off-channel communications, Grewal said recent enforcement actions are meant "to send the message that these requirements matter, regardless of what type of registrant you are."
The Financial Industry Regulatory Authority has unveiled a key topics page and an online FAQ related to new rules that allow for the categorization of home offices as "residential supervisory locations." For the designation to be used, "a firm and the associated person at each location must meet specified eligibility requirements and conditions," FINRA notes.
AI appears set to "revolutionize every industry, including financial services," and advisors could be forgoing opportunities to boost their businesses if they do not embrace the technology, writes Mike Byrnes, owner of Byrnes Consulting. Byrnes highlights three areas of advisors' businesses where AI is likely to have the biggest impact.
Tax expert Jeff Levine highlights seven potential end-of-life planning mistakes that financial advisors need to avoid. Among them are not taking advantage of a client's final income tax return, failing to use the step up or step down in basis, and not harvesting tax losses.
The Retirement Security Blueprint is the road map for the Insured Retirement Institute's annual public policy objectives each year. The 2024 Blueprint includes 33 proposals to enhance and strengthen retirement security for more of America's workers and retirees. Access it here.
IRI's Retirement Saving and Income Handbook is a guide to commonly available annuities and non-annuity alternatives. It provides basic information about the structure, benefits and limitations of each solution, combined with visual representations of the mechanics of each solution and a robust glossary of key terminology. Learn more.