Retirees who have saved do not spend down: EBRI research identifies five profiles of retirees and shows that the richest individuals plan to spend a little, George Moriarty reports. Mary Beth Franklin, a social security guru and editor who participates in InvestmentNews, describes why this is happening.
Rising inflation is likely to boost social security in 2022. COLA: According to InvestmentNews, an older advocacy group predicts that benefits will rise 4.7% next year, based on a 0.8% increase in the consumer price index.
RILA sales growth as advisors direct annuities to portfolios for outgoing clients: Products recorded an increase of 9% compared to the previous quarter and a huge 89% compared to last year, according to Lynnley Browningreport on just published LIMRE data.
The future of wealth management with Catherine Keating, CEO of BNY Mellon Wealth Management: As the pandemic accelerates trends in financial advice and changes the way Americans manage their money, according to Financial planning.
Cathie Wood and Ark – Hype or substance? Cathie Wood is perhaps the most polarizing and controversial figure in finance. Her ministers believe their vision will make them rich. Her slanderers attribute sales skills to her, but question her insight. Robert Huebscher he had recently heard him speak for the first time. Count him among the slanderers.
Social Security issues new, shorter statements: The Social Security Administration has launched a “slow launch” for a redesigned social security statement aimed at a “small percentage” of my online account users who are not currently receiving benefits, an SSA spokeswoman said ThinkAdvisor.
Safe Law 2.0, Biden’s tax increase plans make the Roth IRA a crucial tool: Roger Wohlner writes that Roth IRAs offer a great planning tool to many of your clients. The “Secure Act 2.0” retirement law, which he is expected to pass, would open a wider window for Roth IRA planning.
New legislation requires annuities in pension plans: THE SECURITY LAW paved the way for annuities in 401 (k) s. Under this law, they should Financial Advisor.
FAs are important: Yelp-like reviews will be positive for the industry: Potential clients may find it strange when they can’t find advisor reviews like when they want to try a new restaurant or hotel, one advisor said Financial Advisor IQ.
Regulations affecting retail investor advice: Duane Thompson, President of the Potomac Strategy, on the main changes in the requirements of the Securities and Exchange Commission for advertising and marketing for registered investment advisers.
Choose the best target date: Choosing a target date fund, according to words, is not an easy task Financial Advisor IQ. Advisors need to consider when and if clients want to withdraw as they move through the impact of low bond yields and change glide paths.
Merton and Muralidhar’s vision of retirement income: In this Pension income diary video, Nobel laureate Robert Merton and Arun Muralidhar discuss SeLFIES, their solution to the pension income challenge.
Valid and invalid reasons for refusing an annuity: Many obstacles stand in the way of allocating funds to annuities, he writes Joe Tomlinson. Some questions concern brokers or advisors, and others involve their clients. Some are valid, but others are questionable and reflect irrational biases in behavior.
Robos failed the first big test: Robo-advisors faced the first major challenge in the bear market in the first quarter of 2020, writes Robert Huebscher. They have lost, and that is an ominous sign for the future of automated advice.
Prominent research
Wandering financial advisors
Summary: Therefore, millions of Americans rely on professional counselors to oversee their personal finances research. The misconduct of a financial advisor has significant consequences for investors, and a wide range of federal, state, and self-regulatory institutions have the authority to detect and prevent such conduct. But each regime takes significantly different approaches to these tasks, creating incentives for advisers, especially those who have harmed investors in the past, to seek a looser regulatory environment. Although academics and policy makers are in fierce debates over the regulation of financial advice, no previous work has identified these “wandering” financial advisors.
Using a new dataset of 1.2 million advisors in four major regulatory regimes, this article provides the first systematic analysis of wandering financial advisors. Researchers show that just over a third of advisors who leave the brokerage industry are still in at least one other regime, that advisors are significantly more likely to change regimes after a serious law violation has been committed, and that wandering advisers with past misconduct are significantly more likely to will engage in future misconduct. Further, researchers find that wandering advisers with a history of serious misconduct disproportionately end up in highly fragmented state insurance regimes. Researchers are considering explanations for why advisors wander – and bring policymakers concerned about the cost of misconduct by financial advisors with tools to address this phenomenon.
How competitive are income annuity providers over time?
SECURITY LAW 2019 provides secure protection in the port to employers who estimate the cost of securing a guaranteed income, including the collection of information on competing service providers, write researchers.
Annuities can be more difficult to assess than mutual funds because annuity costs can be opaque, financial strength is essential, and insurers ’competitiveness can change over time. We find significant differences in payout rates between providers over time. Although annuity company payout rankings (e.g., from best to worst) are fairly sticky in the short run, throughout the analysis period the correlation effectively declines to zero (relative to the initial ranking). This suggests that individuals or institutions who choose one annuity supplier based on income payment should regularly review the decision to ensure that prices remain competitive. Companies whose direct annuities account for a larger share of total sales tend to rank higher and remain more persistent over time.
