Financial Crisis

A major player in the life settlement market has filed for Chapter 11 bankruptcy protection. On Monday, J.G. Wentworth and two of its affiliates filed for bankruptcy protection in a Delaware court. J.G. Wentworth had been very active in the life settlement market. The financial crisis has deeply impacted all securitization markets, and the life insurance market is no different. Life insurance policyholders who have already sold their life or annuity policies and received funds should be fine...

Much has changed in light of the financial crisis. Among the changes is an increased level of skepticism when it comes to conventional wisdom in matters related to money. For example, a recent article suggests revisiting the following pillars of conventional wisdom--each of which had been pretty much sacrosanct prior to the financial crisis: Rent a home rather than owning it. Buy an annuity rather than investing in the capital markets. Leave money for heirs now rather than keeping it all until...

A recent Pew Research survey indicates that over half of working adults age 50-64 plan to postpone their retirement in light of the impact that the financial crisis has had on their retirement savings. The survey indicated that recent investment losses--not levels of income --are the primary factor that leads to angst among those who are set to retire in the near-term: But regardless of income or age, those who have lost 40% or more of their investment nest eggs are roughly twice as likely as...

Colleges and universities have become more comfortable over the past several years with using gift annuities as a funding source. A gift annuity allows the college to secure a lump sum donation from a donor. In exchange, the donor receives lifetime income payments from the college. The ability to donate a lump sum while maintaining a source of income from those funds can be very attractive to the donor. This charitable donation funding approach has been growing steadily over the past several...