Income

Some of the world's largest asset managers are working on development of fund offerings that include features such as income guarantees or principal protection. In contrast to standalone living benefits, the new products would actually be embedded into a mutual fund offering. Firms such as Pimco, Russell Investments and John Hancock have expressed strong interest in and are actively developing such offerings. The availability of lower cost insurance features and regulatory complexities are...

Starting on January 1 2010, proceeds from annuities will be free from federal income taxes when used to pay for long term care . The Pension Protection Act of 2006 provides the basis for this change in the tax law. So called "long term care annuities" provide an alternative to the purchase of a long term care insurance policy. There are pros and cons to both approaches, and consumers may wish to pursue both options as they potentially complement one another. A positive for the annuity involves...

In a recent interview, TIAA-CREF CEO Roger Ferguson discusses post financial crisis retirement planning and CREF's role in the new retirement planning landscape. Ferguson believes that increasing longevity in the U.S. is a key driver of what will be a very different 21st century retirement system. Ferguson also suggests that stable sources of lifetime guaranteed income--in other words an annuity --should provide the "backbone" of the future system: It's really important to use this to educate...

There is a very good article in Investment News about retirement planning and, more specifically, devising appropriate withdrawal and income strategies in retirement. The author discusses the nature of various income requirements and makes the entirely appropriate point that all income needs are not created equal. For example, travel desires obviously differ from essentials such as food and shelter. There are also different inflationary characteristics that need to be taken into account. Health...