A recent private letter ruling (“PLR”) offers tax relief for the annuity-owning clients of registered investment advisors. Issued by the IRS in August, the ruling allows fee-based advisors who manage client assets in non-qualified annuities to bill from them directly without creating a taxable event. Because of the positive impact on client experiences, many financial...Continue Reading
If you’ve worked in financial services for the past 20 years, or you follow financial media, you might think that Baby Boomers were the only American generation. Indeed, most of us regurgitate the dog-eared ‘10,000 Boomers turn 65 every day’ stat the way elementary students dispassionately recite the Pledge of Allegiance. With so many children...Continue Reading
Hoo’s, Defense, FIAs, the 500th RIJ, Dynamic, Risk, Legislation, Trade War, Regulation, RegBI Opine, the “F” Word, Vanguard, Leo-nard Bernstein! Our titular inspiration for this quarter’s News and Notes comes from R.E.M.’s 1987 rap “It’s the end of the world as we know it (and I feel fine).” The song climbed to #69 on Billboard’s...Continue Reading
Investment News Contributing Editor Mary Beth Franklin reports that two major themes emerged from the recent Retirement Income Summit in Chicago: the economic impact of increasing longevity, and the need for guaranteed lifetime income as one American turns 73 every seven seconds (source: Joseph Coughlin, MIT Agelab). Certainly, the Retirement Income challenge is exacerbated by a growing...Continue Reading
Michael Finke of the American College interviews Nobel Prize winning economist Bill Sharpe about his latest research. “Finding a Better Retirement Income Solution” examines the results of his study demonstrating the strength of annuities as retirement income solutions. Finke says Sharpe is positive about the efficiency of income annuities. Many economists agree on that point....Continue Reading
We’ve added 3 new fee-based annuities from TIAA on the RetireOne platform including the Intelligent Variable Annuity®, Investment Horizon fixed annuity, and TIAA Single Premium Immediate Annuity. The Intelligent Variable Annuity With some of the lowest fees in the industry, the Intelligent VA grows the RetireOne accumulation solution set to help RIAs and fee-based advisors...Continue Reading
Vanguard has measured a 30-40% chance for a recession by late 2020. The popular fund company (and manager of subaccounts in some of RetireOne’s solutions) base their prognosis on a couple of factors. Writing in the New York Times, journalist Jeff Sommers says, “The recession projection is based largely on interest rate expectations using two...Continue Reading
Deep into this unprecedented bull market, everyone seems to be looking for signs that it will come to an end. Too much of a good thing has made us all nervous as long-tailed cats in a room full of rocking chairs. We all know it can’t go on forever. Experts are coming out of the...Continue Reading
Dick Cotton updated his earlier post on The Retirement Cafe on Floor-and-Upside strategies. The floor-and-upside strategy for financing retirement is sometimes referred to as “safety first” and derives from The Theory of Life-Cycle Saving and Investing. The basic idea behind floor-and-upside is that a retiree devotes some of her retirement funding assets to building a...Continue Reading
Prudential’s recent research study found that about half (51%) of retirees retired earlier than planned. While early retirement may seem like welcome news, only 23% retired earlier than planned because they either had enough money to retire, wanted to retire, or were tired of working. Forty-six percent of those who retired earlier than expected did...Continue Reading
