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Saturday April 19th 2014

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Posts Tagged ‘annuities’

Low Interest Rates Don’t Spoil Fixed-Annuity Party

Low Interest Rates Don’t Spoil Fixed-Annuity Party

Despite historically low interest rates, fixed annuity sales are hitting record setting levels as the demand for transfer of risk guarantees continue to grow. Sales of single-premium immediate annuities and fixed-index Annuities hit historic heights in 2013, according to recent numbers released by the industry data group, LIMRA. Even fixed-rate [...]

Global Atlantic Financial Group Agrees to Acquire Forethought Financial Group

Global Atlantic Financial Group Agrees to Acquire Forethought Financial Group

Global Atlantic Financial Group (Global Atlantic), a multiline insurance and reinsurance company, today announced that it has entered into a definitive agreement to acquire Houston-based Forethought Financial Group, Inc. (Forethought), a financial services company with life insurance and annuity operations throughout the US. Forethought will [...]

Annuities to Buy Now and Collect On Later, Maybe Much Later

Annuities to Buy Now and Collect On Later, Maybe Much Later

Annuities have a long rap sheet. They are expensive. They can tie up investors’ money. They can shackle buyers to current interest rates. They are confusing. And maybe a little boring. But many investors have become enamored lately with versions called deferred-income annuities, which seem to ease the concerns about cost and interest rates. [...]

The Mistake California Makes on Pension Reform

The Mistake California Makes on Pension Reform

California is confronting a huge retirement problem: Americans haven’t saved enough and remain uncertain about how to invest their savings. The state is considering a plan to automatically enrolled workers a program where 3% of their savings will go toward an account with a guaranteed 3% return. The purpose of this program seems to be giving [...]

Record On Wall Street Spurs Talk Of Retirement Planning

Record On Wall Street Spurs Talk Of Retirement Planning

Wall Street's recent record-breaking performance has prompted financial planners to urge people saving for retirement to review their assets. The Dow Jones Industrial Average closed at an all-time high, beating the record it set in October 2007, before the financial crisis. The Dow ended the day up 126 points 14,253.77, beating its previous [...]

Never Too Late to do Retirement Planning

Never Too Late to do Retirement Planning

Some of the assumptions we've made for generations about the best way to save and plan for retirement may no longer be true. The decline in housing and stock prices beginning with the 2008 crash, and a decline in 401(k) matches from employers, has raised the proportion of working households at risk of having too little to retire on just over half, [...]

Cigna Paying Berkshire $2.2 Billion to Take Annuity

Cigna Paying Berkshire $2.2 Billion to Take Annuity

Cigna Corp. (CI) struck a deal with Warren Buffett's Berkshire Hathaway Inc. (BRKA, BRKB) that will transfer up to $4 billion in obligations pegged to once-troublesome annuity operations Cigna began winding down more than a decade ago. Despite being in wind-down mode, the businesses can still pop up as messy distractions in Cigna's financial [...]

New Annuity Guarantees Raise Questions

New Annuity Guarantees Raise Questions

The latest products from insurers are less expensive. But regulators—and consumers—remain wary. With millions of baby boomers headed to retirement without old-fashioned pension plans as safety nets, here is a product that would seem to have big appeal: a guarantee of lifetime income from a portfolio of ordinary mutual funds—however long the [...]

Solving the Riddle of the Immediate Annuity

Solving the Riddle of the Immediate Annuity

Only about 3% of insurance policies sold are immediate or income annuities. Policyholders often can’t get access to cash once they sign the annuity contract. Plus, if they die before their principal is exhausted, any money left, unless they make other arrangements, generally goes to the insurance company. Even if the immediate annuity permits [...]

Non-Qualified Annuities Regain Favor

Non-Qualified Annuities Regain Favor

After six months of negative cash flows, non-qualified annuities turned positive in the third quarter. Such annuities also gained market share, according to the Depository Trust & Clearing Corporation. Nevertheless, flows into qualified annuities – those purchased for company retirement plans and IRAs – continued to far exceed flows into [...]