premium-finance

Opinion: Calling annuities “guaranteed income” ups attraction

The “theoretical attractiveness” of annuities “hasn’t translated to the marketplace,” and one of the key reasons is annuities’ label and its overall marketing, writes John Rekenthaler, vice president of research for Morningstar. He suggests rebranding annuities by calling them “guaranteed income.” Morningstar

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Commentary: Avoiding mention of annuities fails clients

Annuities may not be a perfect fit for every client, but advisors are failing to serve their clients and in their own fiduciary duty if they never mention them, says Lance Carlson, Great-West Financial’s head of sales distribution. He notes that annuity products offer simplified compensation structures and competitive withdrawal…

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Criticism of fixed-indexed annuities misguided, financial planner says

A critic of fixed-indexed annuities argued that buyers are giving up growth when, in fact, they are choosing safety for their invested funds, writes financial planner Stephen Kelley. He discusses the benefits of FIAs and the fallacy of believing “that everything is a choice between the market and some inferior…

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Annuity’s impact on Medicaid eligibility calls for careful review

Annuities can be helpful in preserving client assets while also maintaining eligibility for Medicaid long-term care benefits, but the rules are complicated and it is important to comply with them, according to elder law specialist Yale Hauptman. “There is great danger in attempting it and failing,” he says. Financial Advisor…

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Advisors should inform clients about annuities’ tax benefits

Annuities offer several opportunities to reduce taxes, and tax season is an ideal time for advisors to tell their clients about them, according to The Standard's Chris Conklin. "[Clients are] sensitive to what tax implications they're facing and may be more open to solutions like annuities that can help save…

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House bills aim to increase access to annuities, modernize statements

Two measures introduced in the House are intended to make annuities more accessible and modernize how retirement statements are provided. The Increasing Access to a Secure Retirement Act would help employers offer annuity options in their retirement plans, while the Receiving Electronic Statements to Improve Retiree Earnings Act is aimed…

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Research: Fixed annuity sales expected to enjoy strong growth

Fixed annuities, including fixed indexed annuities, will continue to gain market share over the next five years, according to a report from Cerulli. By the end of that period, annuities that incorporate guaranteed income riders will account for 77% of the market, the report said. BenefitsPro

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Annuities can help fund seniors’ home-care costs

A recent survey shows the majority of seniors would prefer to receive long-term care in their own homes, but this often comes at a high cost. Jennifer Cray, a partner at Investor's Capital Management, notes that while long-term care insurance can be expensive, annuities with long-term care riders provide a…

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Annuities offer a way to cope with low interest rates

Debra Repya, a chartered financial consultant and life underwriter, discusses the challenges facing investors in the prolonged low interest rate investing environment. She suggests that retired or conservative investors consider fixed and variable indexed annuities. U.S. News & World Report

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Expert discusses suitable and unsuitable IRA investments

Financial expert Michael Kahn analyzes the investments best suited for an individual retirement account. He recommends stocks and most types of bonds but notes municipal bonds and annuities are not appropriate. Kiplinger online

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