Financial Crisis

The wealth of Federal Reserve chairman Ben Bernanke decreased to $850,000 - $1.9 million at the end of 2008 from the $1.2 million - $2.5 million range in 2007. The financial crisis took a toll on most of chairman Bernanke's asset holdings. Particularly hard hit, though, was the variable annuity that is owned by chairman Bernanke: "Much of Mr. Bernanke's decline came from a large-cap stock variable annuity he holds, whose value dropped from between $500,000 and $1 million at the end of 2007 to...

There is an increase in demand for financial planning services among employers. The planning services are paid for by the employer and are offered as a benefit to employees. Firms that offer the planning services such as Ernst and Young and PricewaterhouseCoopers have notices a significant uptick in their business. Business is up 20% from the previous year at E&Y and 25% at PWC. The financial crisis has likely been a catalyst for the increased demand as many employees are confused and...

A recent Wall Street Journal article notes that owners of variable annuities with guaranteed living benefits ( GLB ) have been largely immune to the fallout from the financial crisis. "One of the best investments of the past decade was one of the most derided: the variable annuity ." The protection offered by GLBs such as the guaranteed minimum withdrawal benefit is discussed. "Because of such guarantees, many holders of variable annuities actually saw their accounts increase 6% or more in...

Brett Arends writes a personal finance column for the Wall Street Journal. He is one of the more interesting and popular personal finance writers in the industry. Although a subscription is required to read the Wall Street Journal, Arends' column (among other Journal features) is highly recommended. For the past two weeks, Arends has written columns that focus on annuities. The columns can be accessed by clicking here and here . Both articles are highly recommended. Topics addressed include:...